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Session Recap: The Euro is alive! And the USD/JPY

FXStreet (San Francisco) - The EUR/USD reacted on Tuesday since the euro bulls welcomed a good German Zew data and investors confidence that showed its first increase in 11 month. Then the single currency reconquered the 1.2500 area.

FXStreet chief analyst asked in a recent article if it was the beginning of a counter-trend move? Bednarik pointed out that the "dollar strength that ruled markets for most of the last quarter may be finally due to a well deserved correction, and the EUR/USD upward corrective movement could extend particularly if the weekly high is overcome, yet a reversal in greenback’s momentum is yet to be confirmed."

The EUR/USD recovered on Tuesday all losses suffered on Monday and closed at 1.2530 after rallying from 1.2445. A break above 1.2570 should lead to a smooth recovery towards 1.2660.

The USD/JPY was shaken by news of Japan and Abe decisions on parliament and early elections. The pair fell from 117.05 after failing to reach a higher high and following a 70-pip decline, the pair found buying interest at 116.30 which sent it back to maximum. Now the USD/JPY sieges the 117.00.

Key headlines

US: Producer Prices (Oct) rose 1.5% YoY

JPY shaken by Abe – TD Securities

November 2014 US NAHB housing market index 58 vs 55 exp

US stocks gained momentum on Tuesday but closed off highs

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