Stock markets tumbled on Tuesday because of growing fears of recession. European indices collapsed, while US indices managed to move into positive territory before the close of the trading session due to a fall in Treasury yields ahead of the release of the Fed's minutes of the meeting and other important economic data.

A decline was also seen in the forex market, especially in risky assets such as euro. The sharp drop in European stock indices led to sharp sell-offs, while active purchases were seen in dollar.In terms of the US government debt market, active purchases of treasuries put pressure on their yields. Logically speaking, investors should have sold them, but the recent rate hikes led to losses for bondholders.

The military conflict in Ukraine and economic problems in Europe also pushed investors to look for safe-haven assets, which, over the past decades, have remained to be the US public debt market.

Just ahead is the release of the Fed's minutes of the meeting, which may contain hints on what the rate increase will be at the July meeting. If it does not mention any information, the report will have no appreciable impact on the markets. In that case, expect a local decrease in dollar and a continuation of yesterday's rebound in the US stock market.

Forecasts for today:

GBP/USD

Pound is showing signs of a rebound amid an increase in European stock indices and positive market sentiment. A rise above 1.1980 will lead to a further growth to 1.2190.

USD/CAD

The pair is trading above 1.3010. Rising crude oil prices and positive market sentiment may lead to a drop below 1.3010 and further to 1.2875.