Asian markets rise after possitive stress tests results; Euro and Pound, strong ~ Forex Special

Monday, July 26, 2010

Asian markets rise after possitive stress tests results; Euro and Pound, strong

Forex Special

(Barcelona) - Asian markets have opened the week on bid tone, with investors' optimism buoyed by positive stress tests results by European banks, and an upbeat string of corporate earnings in the US, which have bolstered demand for risk. In FX markets, Euro and Pound remain steady at high levels.

Japanese Nikkei Index adds 1.0% supported by Japanese exports figures, which rose in June for the seventh consecutive month. South Korean Kospi Index advanced 0.4% and Hong Kong's Hang Seng Index rose 0.2%.

Markets in Asia have followed the Wall Street, which rose around 1% on Friday, as confidence improved after the release of European bank's stress tests results which showed that only seven of the 91 banks tested could face liquidity problems.

Furthermore, the release of better than expected quarterly earnings by Verizon, Ford and American Express Co, contributed to increase demand for risk.

Euro and Pound steady at high levels

EUR/USD remains trading at level close to 1.3000 psychological resistance. The pair pulled back from 1.2965 high ahead of the release of European banks stress tests results, to find support at 1.2800 area and bounce back, to consolidate between 1.2900 and 1.2950 during Monday's Asian session.

GBP/USD rally from 1.5125 low on Jul 21 extended on Friday above 1.5400, and, after a mild pullback to 1.5350 area ahead of stress tests' release, the pair, bounced up to extend above 1.5450on Monday's Asian session, reaching levels right below 3-month high at 1.5470 ahead of the European opening.

USD/JPY rally from Jul 22 low at 86.35 has found resistance at 87.70 area on Monday's Asian session, and the pair is pulling back ahead of the European session opening, trading at 87.40 session low at the moment of writing.