U.S. markets open mixed; Euro and Pound rallies, capped

Stock markets in the U.S. are mixed on Tuesday as investors remain cautious about the results of banks’ stress tests, on the back of rumours of 10 banks in need of capital to withstand the current crisis. Euro and Pound Pull back from medium-term highs.

Dow Jones Industrials Index edges up 0.26% while the Nasdaq Index slides 0.50% and the S&P Index practically at its opening level in the first hour of trading.

On the macroeconomic front , U.S. services ISM has increased to 43.7 in April from 40.8 in March, a somewhat better reading than the 42.7 expected by market analysts.

Euro and Pound pull back from recent highs

EUR/USD attempt to break 1.3435 has failed and the pair has lost about 60 pips dropping to levels below 1.3400. At the moment, the Euro trades at 1.3380.

GBP/USD has been rejected at 1.5165 4-month high and the Pound has lost positions fast dropping below 1.5100. The Pound trades at the moment at 1.5085.

USD/JPY has bounced up from intra-day low levels at 98.60 and the pair advances higher reaching levels around 98.90 at the time of writing.