Asian markets advance on U.S. economic recovery; Euro and Pound at higher levels

Fri, Oct 30 2009, 07:12 GMT
http://www.fxstreet.com

FXstreet.com (Barcelona) - Asian markets are going through a bid session on Friday after three consecutive days win negative, on improved optimism after U.S. GDP showed that the world's main economy is coming out of a year-long crisis. Euro and Pound consolidate at higher levels.

Japanese Nikkei Index advances 1.4%, while Hong Kong's Hang Seng Index soars 3%, and South Korean Kospi Index adds 0.5%. Markets in China and Australia print advances beyond 1%.

Markets are buoyant on U.S. GDP, which advanced at a 3.5% on the third quarter, according to the U.S. Commerce Department, due to a sharp increase on private consumption. The world' largest economy seems to have tackled economic slowdown after a year-long recession period although analysts advice a cautious approach to U.S. data, as government stimulus might have had too influence on economic recovery.

Euro and Pound bounce up

EUR/USD decline from 1.5060 year to date high, bottomed on Thursday at 1.4680 and the Euro rallied during the day, getting bak some of the ground lost during the previous days of the week to find resistance at 1.4850 area and consolidate during Asian session from 1.4820 to 1.4850/55.

GBP/USD rallied on Thursday from 1.6335 low during Asian session to break above previous week high at 1.6465 on the back of U.S. GDP data and reach a fresh high at 1.6600. During Asian session, the Pound has consolidated between 1.6525 and 1.6600.

USD/JPY has been going up and down; Dollar decline from 91.30 week high bottomed at 90.25 on Thursday, and the pair soared during European and U.S. sessions up to 91.60 to turn down and decline during Asian session reaching levels below 91.00 at the moment of writing.