European markets advance ahead of FOMC; Euro and Pound, on recovery

Wed, Nov 4 2009, 10:45 GMT
http://www.fxstreet.com

FXstreet.com (Barcelona) - European markets are going through gains on Wednesday, although investors remain cautious ahead of the Fed's Monetary Policy Meeting. The Pound rallies to intra-week highs while the Euro advances after having bottomed on Tuesday.

Eurostoxx 50 Index advances 1.3%, while German DAX Index rises 1.4% and the same accounts for the French CAC Index. In the UK, the FTSE index trades advances 0.7% in the first hours of trading.

Today's session's focus is set on the Federal Reserve's monetary policy statement, due at 19.15 GMT, to assess the Bank's attitude about monetary tightening once U.S. economy seems to be coming out of recession.

Euro and Pound rallying from Tuesday's lows

EUR/USD bounced at 1.4625 low on Tuesday, and the pair has advanced up to resistance area at 1.4770 during European session. At the moment, the Euro remains trading in a narrow range right below 1.4770.

GBP/USD rally from 1.6250 low on Tuesday has extended above 1.6500 on the back of better than expected UK Services PMI data, and the Pound has reached an intra-week high at 1.6545.

USD/JPY has rallied from session low at 90.00, breaking above 90.70 resistance to hit a fresh intra-week high at 91.05, althpough the pair has not been able to hold above 91.00 anfd trades around 90.85 at the mpoment of trading.

© 2009 “FXstreet.com. The Forex Market” All Rights Reserved. Every effort is made to provide accurate and complete information. However, with the thousands of documents available, often uploaded within short deadlines, we cannot guarantee that there will be no errors. Any republication or redistribution of FXstreet.com content is expressly prohibited without the prior written consent of FXstreet.com.
Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.
Any opinions, news, research, analyses, prices or other information contained on this story, by FXstreet.com, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXstreet.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.