EUR/USD
The euro surged against the dollar on Tuesday, posting its largest one-day rally in nearly three months, as uncertainties related to the Greek debt crisis and poor U.S. economic data remained in focus. In Berlin, high-level talks between top monetary policymakers and leaders of Germany and France on Monday evening dragged past midnight, as the officials worked to craft a strategy on how to approach what could be the final round of talks with Greece. ECB President Mario Draghi, IMF head Christine Lagarde, Germany Chancellor Angela Merkel, France President Francois Hollande and European Commission President Jean-Claude Juncker were among the officials present at the meeting.
GBP/USD
The pound rose against the U.S. dollar on Tuesday, boosted by upbeat U.K. construction activity data, while demand for the greenback slightly weakened as market participants locked in profits from its recent rally. In a report, market research firm Markit (NASDAQ:MRKT) and the Chartered Institute of Purchasing & Supply said that their U.K. construction purchasing managers' index rose to 55.9 last month from a reading of 54.2 in April. Economists had expected the index to improve to 55.0 in May.
USD/JPY
The yen held weaker on Tuesday, as investors looked ahead to increasingly tense negotiations over Greece's debt woes. Despite the yen edge lower, Japan reported April average cash earnings rose 0.9%, well above the 0.4% gain seen year-on-year. Meanwhile, the yen showed little reaction after Bank of Japan Governor Haruhiko Kuroda said Tuesday that it was important for currencies to reflect economic fundamentals.
