US Dollar extended recovery on Tuesday following the relatively upbeat US labor market figures on Friday. On Wednesday, the market will focus on on the FOMC meeting minutes release фе 18:00 GMT on Wednesday. As for the EUR/USD currency pair, we could see more weakness here tomorrow. Selling below 1.1350 is good trading idea. However, in the medium term we still remain bullish for the European currency.
GBP/USD remains under bearish pressure, but the market is strongly oversold now. We expect a temporarily pullback to 1.4200 before a new wave of weakness will follow. The pair targets the 1.4070/50 support area this week. As for the economic calendar, watch the UK housing price indx tomorrow.
USD/JPY was a big mover on Tuesday, smashed by a wave of risk aversion. A new selling impulse followed in the American session. Break below 110.00 yen (channel support) will triger a stronger selling impulse for the pair.