Session Recap: USD strong on Italy uncertainty and US data (San Francisco) - The US Dollar is trading on Tuesday with strong note following Monday's panic. The EUR/USD, GBP/USD and the USD/JPY have been trading in consolidation mode while the USD/CAD rocketed to highest since June 2012 and the AUD/USD weakening to 4-month lows.

Market was focused on Ben Bernanke testimony and despite his words weren't bearish at all, he make clear two topics, more QE may erode confidence in Fed exit ability and the QE will continue until substantial labor market gains. Stocks reacted down at first, but indexes rallied on the day fueled by the battery of better than expected housing, confidence and manufacturing data in the US.

Main headlines in the American Session:

American equity markets open positively ahead of Fed

US: Richmond Fed Manufacturing Index rose from -12 to 6 in February

US: Consumer Confidence jumps to 69.6 in February

US: New Home Sales improve 15.6% to 0.437M in January

Forex: USD/JPY at session highs after US data

Fundamental Afternoon Wrap: The Italian Job

Forex: EUR/USD tumbles after US data and Fed's Bernanke on QE

Forex: USD/CAD breaks above 1.0275 to trade at 8-month highs

Bernanke defends Fed easy money policy

Forex: EUR/USD hovering over 1.3070/80

Political uncertainty and strong data keep the USD buoyed

Forex: USD/JPY in session lows around 91.30

Forex: USD/CAD retraces from 1.0300

US markets in a ‘sea of green’ on Bernanke, US data

Forex: GBP/JPY bounces at 137.80, 2-month low

Forex: GBP/USD consolidates above 1.5110