Wednesday, July 28, 2010

Asian markets drop after four-day rally; Yen advances

Forex Special - Asian markets have traded on sell tone on Thursday, putting an end to a four-day rally, with investors taking profits as concerns about the pace of US economic recovery increase. In FX markets the Yen has moved higher, while Euro and Pound remain flat.

Japanese Nikkei Index was trading 0.5% lower at lunch time, while Hong Kong Heang Seng Index drops 0.25% and South Korean Kospi Indexs edges 0.1% down. Australian benchmark market dropped 0.5% while Singapore and China remained flat.

The Dow Jones closed Wednesday's session with a 0.38% decline, with confidence dampened by the Beige Book, which showed that the pace of economic recovery slowed down during the summer on some areas of the US.

Yen rises, Euro and Pound flat

USD/JPY has given away most of the ground taken on Tuesday. Recovery from 86.80 low was capped yesterday at 88.10 resistance area, and the pair dropped on European and US sessions, to bottom at 87.10 on Thursday's Asian session.

EUR/USD has remained trading on a narrow range around 1.3000 for the third consecutive day, while the GBP/USD rally from 1.5120 stalled yesterday at 1.5631, 5-month high, and remained trading in range around 1.5600 since.

EUR/USD (Jul 29 at 06:40 GMT)

1.3030/31 (0.27%)

H 1.30455 L 1.29775

[?]Trend Index[?]OB/OS Index
Slightly BullishNeutral
Data updated on Jul 29 at 06:15 (15-minute timeframe)

[ View EUR/USD Technical Studies ]


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