Asian markets

Most Asian markets have traded on a slight positive tone, on a cautious session, with investors concerned about rising oil prices and their potential effects on the weak and uneven global economic recovery. In currency markets the Dollar has trimmed recent losses.

Japanese Nikkei Index rises 0.2%, while the Hong Kong Hang Seng Index added 0.4%, and South Korean Kospi Index 0.8% up. The Australian ASX index rose 0.2%, while in China, the Shangai Composite Index lost 0.3%.

Risk appetite has remained subdued in Tuesday despite the slight decline on oil prices, front month light sweet crude price eased USD0.58 in Asian session to USD104.86 while Brent crude prices dipped USD0.64 to USD114.40 per barrel.

Investors remain spooked with oil prices above USD100, considered detrimental to global economic recovery, while increasing volatility in Middle East countries, has increased aversion to risk and fears of disruptions on oil supply.

Dollar trims losses

EUR/USD remains strong across the board, as the markets increased their expectations on an imminent rate hike by the ECB. The pair's rally from 1.3430 extended yesterday to 1.4030, 4-month high, to ease below 1.4000 and consolidate above 1.3955 in Asia.

GBP/USD launched an assault to 13-month high at 1.6345, and the pair reached 1.6343 high where it was capped before plunging to consolidate around 1.6200 during Asian session.

USD/JPY retreat from 83.05 high on Friday, found support at 81.95 on Monday, and the pair picked up, to consolidate between 82.20 and 82.40 on Asian session.

source: fxstreet.com