Session Recap: USD recovers ground

FXstreet.com (Córdoba) - The USD trades mostly firmer Tuesday as disappointing German IFO data intensified demand for the greenback. However, in the absence of major developments, the main catalyst seems to be traders adjusting positions after last week USD decline.

EUR/USD fell back below 1.3500 and is consolidating just below that level, while GBP/USD hit a fresh 6-day low and hovers below 1.6000. USD/JPY failed to hold above 99.00 and is now trading near 98.75. The Antipodean currencies are among the worst performers, with AUD/USD below 0.9400 and NZD/USD under 0.8300.

Elsewhere, US futures were nearly flat as worry over the debt ceiling impasse in Washington weighed on equities globally, although European indexes were on recovery mode in afternoon trade.

Main Headlines in Europe:

European open: little to upset the apple cart, commodities remain under pressure

Germany: IFO – Business Climate almost unchanged in September

UK: BBA Mortgage Approvals increase less than expected in August

Emerging market economies cannot blame the Fed for foreign exchange risk

Commodities sank on firmer dollar

The Swiss National Bank defends its decision to maintain a floor under EUR/CHF

BoE policy will not be tightened until there is “a meaningful dent in unemployment.” GBP/USD weakens