Asian markets edge up ahead of FOMC; Euro and Pound pick up

Wed, Nov 4 2009, 07:06 GMT
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FXstreet.com (Barcelona) - Asian markets are, in most cases, going through moderate advances on Wednesday amid a cautious session ahead of the Federal Reserve's monetary policy meeting. Euro and Pound are bouncing up from Tuesday's lows.

Japanese Nikkei Index remained flat at mid session after being closed for national holiday on Tuesday, while Hong Kong's Hang Seng Index rose 0.7% snapping two consecutive negative sessions, and South Korean Kospi Index rose 0.5%. Markets in China and Singapore advanced while Australian S&P Index sheds 0.2%.

Optimism dominated the markets on the back of fairly good macroeconomic data in the U.S; ISM and housing data show that U.S. economy starts to recover, although investors remain cautious ahead of the Fed comments after tits two-day monetary policy meeting.

Euro and Pound pick up from lows

EUR/USD declined on Tuesday from levels above 1.4800 to hit the lowest level in nearly a month at 1.4625, and the Euro picked up slightly during U.S. and Asian sessions, reaching levels right below 1.4750 at the time of writing.

GBP/USD experienced a stronger reaction, and, after dropping from 1.6480 high on Monday to 1.6260 low on Tuesday, note that key resistance lies at 1.6240/50 area, the Pound has bounced strongly on U.S. and Asian sessions, taking back all the ground lost previously to reach levels several pips shy of intra-week high at 1.6480.

USD/JPY remains flat after last week's decline from 92.30 bottomed on Monday at 89.15, consolidating in a range from 89.85 to 90.70.

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