Asian markets dip on concerns about recovery; Euro and Pound under pressure ~ Forex Special

Thursday, July 22, 2010

Asian markets dip on concerns about recovery; Euro and Pound under pressure

Forex Special (Barcelona) - Asian markets have been trading on bid tone on Thursday, with risk appetite dampened by Ben Bernake's comments, casting shadow over the pace of US economic recovery. In Forex markets , fear has damaged Euro and Pound, which dipped to week lows.

Japanese Nikkei Index has lost around 1%, while Hong Kong Hang Seng Index dipped 0.2%.South Korean Kospi Index has dropped 0.5% and Australian S&P and New Zealand's NZX Indexes have both dropped 0.6%.

Market confidence deteriorated considerably on Wednesday after Fed's chairman, Ben Bernanke warned that US economic recovery, remains "unusually uncertain". Wall Street went through a negative session with its benchmark indexes posting losses beyond 1%, and Asian markets following the track.

Euro and Pound pressured on concerns abut recovery

EUR/USD retreat from 1.3035 high on Tuesday, extended yesterday as concerns about economic recovery increased, and the pair dipped below 1.2800, to hit a fresh week low at 1.2730, before a mild recovery during Asian trade, lifted the pair to 1.2785 high.

GBP/USD retreat from 1.5470 high on July 15 extended slightly lower on yesterday's US session as the pair, rejected at 1.5335 dropped below 1.5185/00 support area, which has been acting as resistance, capping Pound's recovery attempts during Asian session.

USD/JPY recovery attempt witnessed on Monday and Tuesday was capped at 8755 high, and the pair dropped as risk aversion on Bernanke's comments supported the Yen, sending the pair back to 86.40 low, about 15 pips short of 7-month low at 86.25, hit on Jul 16.