USD

The dollar was stronger not so long ago versus a number of its peers. The GBP/USD pair is higher at the moment by 0.11% at $1.5180. The AUD/USD currency pair has gained 0.11% to $1.0269. The USD/CAD pair is lower by 0.12% at 1.0248 Canadian cents. There is the feeling that recent losses for risky assets may have been overdone. This explains why the greenback has started to lose value in the most recent trading.

EUR

The euro seems to have made an impressive comeback, despite being lower just an hour ago. The EUR/USD pair is higher as of now by 0.39% at $1.3114. The EUR/GBP has gained 0.28% to 86.38 pence. Traders have decided to start taking risks following the losses which were made in Asian stocks a few hours ago. Such behavior for the forex market may continue into the latter hours of trading. Therefore, be prepared for all possibilities this afternoon.

JPY

The yen is the weakest currency following the slump in Japanese and Asian stocks this morning. The biggest losses have been against the euro, dollar and pound. Trades are willing to take many risks when it comes to the forex market. This is in spite of the Italian parliamentary elections leading to a stalemate. This may lend a helping hand to European and U.S. stocks later on. This is even though European equities have slumped in the most recent trading.

Asian stocks fell for the first time in three trading days amid the latest parliamentary elections in Italy. There are concerns that the results may ignite the European debt crisis. There has been much downward pressure on Hong Kong shares due to the possibility that more property curbs will be imposed.

The MSCI Asia Pacific Index slumped 0.6% to 133.47. Japan’s Nikkei 225 Stock Average fell 2.3%, the most since January 23. Australia’s S&P/ASX 200 Index lost 1%. New Zealand’s NZX 50 advanced 0.3%. South Korea’s Kospi Index dipped 0.5%. Hong Kong’s Hang Seng Index made losses of 1.3%. China’s Shanghai Composite Index slumped 1.4%. Taiwan’s Straits Times Index slid 0.8%. Singapore’s Straits Times Index lost 1%.

HSBC Holdings Plc. fell 1.4% to HK$84.15. Sony slumped 3.7% to 1,290 yen. Esprit Holdings Ltd. retreated 1.4% to HK$10.18.

The losses in Asia will have big implications for U.S. stocks later this Tuesday.

Crude Oil

Crude oil has been one of the most bearish commodities in the past week of trading. This marks a turning point, as crude was previously a very good performer in previous months.

It may be that prices have overheated and traders feel like taking out their profits.

Crude oil futures have fallen today by 80 cents to $92.32. There are a number of factors that are weighing own the energy at the moment. The recent rise in inventories led to much bearishness for oil.

In addition, the instability regarding the latest Italian elections has pushed many traders away.

The dollar has regained some of its earlier losses, putting additional bearish pressure on the commodity in the most recent trading.

The upcoming data from the U.S. economy will be vital in determining which direction oil prices will go this afternoon.

USD/JPY

The weak Japanese shares actually hurt the yen today. In turn, the U.S. dollar has been one of the biggest benefactors. The USD/JPY forex pair is higher today by 34 cents at $92.17. Traders are of the view that the JPY may slip further against the U.S. dollar, explaining why the USD/JPY pair is so bullish during today’s trading session.