Asian markets soar as confidence returns; Euro and Pound pick up ~ Forex Special

Friday, July 23, 2010

Asian markets soar as confidence returns; Euro and Pound pick up

Forex Special (Barcelona) - Asian Markets have posted steep advances on Friday as confidence on economic recovery improved, following positive figures from the European Union and a sharp rally in Wall Street on Thursday. In FX markets, Euro and Pound bounced up from week lows.

Japanese Nikkei Index has rocketed 2.3%, while Hong Kong's Hang Seng Index added 1.1%, and South Korean Kospi Index rose another 1.1%. In Australia, the S&P/ASX 200 Index rose 2.0%.

In the US, Wall Street benchmark Indexes posted rallies beyond 2.0%, boosted by upbeat corporate earnings and better than expected Housing data, adding confidence triggered by promising macro economic figures in the Euro Area.

Euro and Pound pare losses

EUR/USD retreat from 1.3000 area found support on Thursday at 1.2730 week low, and the pair bounced up, supported by positive data in the EU and the US, to consolidate during Asian se4ssion in a range around 1.2900.

GBP/USD decline from 1.5335 low on Wednesday, found support at 1.5125, and the pair picked up on Thursday, to consolidate between 1.5250 and 1.5300 during US and Asian sessions.

USD/JPY reversal from 87.55 high on Tuesday, was held at 86.35 low yesterday, and the pair picked up as confidence improved, to reach 87.25 high on Friday's Asian session before pulling back again, to levels right below 87.00.