FXstreet.com (San Francisco) - Two stories on Tuesday. First, the Sterling being pressured on UK rating downgrade rumors and second, the good data in the German ZEW which push the Euro to trade at intra-week highs. Stocks trade at 5-year highs and risk appetite was buoyant.

The EUR/USD is testing the 1.3400 level after rallying around 170 pips from 1.3225 to intra-day high of 1.3398. The GBP/USD collapsed to 7-month lows at 1.5415 where the pair remains trading on consolidation mode.

Main Headlines in America

Commodities Brief – Precious metals pare gains at onset of US trading
Hollande admits France will grow less than expected this year
American equity markets open positively after long weekend
Session Recap: USD mixed. Range trading prevails
US: NAHB Housing Market Index eases to 46 in February
Forex: USD/JPY under narrow range, flat on the week
S&P 500 hits fresh 5-year high
Forex: EUR/USD threatens daily highs
Fundamental Afternoon Wrap: EUR capital flows climb & BoJ proposals loom
Downgrade rumors weigh on the Sterling
S&P – no comment on rumor of a UK downgrade
Forex: GBP/USD breaks down 1.5435 towards fresh 7-month lows
Forex: EUR/USD testing Monday’s highs, around 1.3380
SNB’s Jordan: Will continue to enforce cap with utmost determination
US markets in 5-year highs, dollar flat
Forex: USD/JPY slides to fresh daily low
Forex: EUR/USD keeps pushing higher, eyes on 1.3400