Asian markets decline after Fed's statement; Euro and Pound pull back

Thu, Nov 5 2009, 07:05 GMT
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FXstreet.com (Barcelona) - Asian markets are going through negative figures on Thursday ass Federal Reserve's monetary policy statement failed to give investors confidence about the strength of economic recovery. Euro and Pound ease from post-Fed highs.

Japanese Nikkei Index drops 1% with the country's exporter firms weighed by a too strong Yen. South Korean Kospi Index declined 1.6%, while Hong Kong's Hang Seng Index dips 0.9%.

The Fed's monetary policy committee, agreed on Wednesday to keep rates on hold at 0.25% and assured that rates will remain at low levels for an "extended period", although its economic assessments raised concerns about economic recovery being strong enough to feed an 8-month rally like the one we are seeing in global markets.

Euro and Pound pull down

EUR/USD rebound from Tuesday's low at 1.4623 reached a session high at levels right above 1.4900 after the Fed's statement was released although the pair failed to break 1.4900 and pulled down to levels around 1.4815 at the moment of writing.

GBP/USD bounced on Tuesday at 1.6260 and extended recovery on post Fed rally to set an assault to 1.6600 resistance level, which failed to give way, and the pair pulled down during Asian session reaching levels around 1.6465 at the moment of writing.

USD/JPY rose on Wednesday from 90.05 low to test 91.30 resistance on post-fed rally but it was rejected and the Dollar depreciated during Asian session, returning to levels around 90.30 at the moment of writing.

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