FXstreet.com (Barcelona) - Asian markets are going through considerable losses on Friday following Thursday's decline in Wall Street; U.S. Stock markets have returned to levels of 1997. The Dollar has weakened across the board.
Tokyo's Nikkei Index has declined 2.7%, while the All Ordinaries Australian Index has dropped 1.6%. In Japan the Kospi Index has gone o.5% down and the Hong Kong's Hang Seng Index has dropped 1.1%.
Wall Street tumbled on Thursday, with the Dow Jones Index dropping 4.1% to 6,594.44, the lowest level since April 1997, and the Nasdaq Index lost 4% falling to levels of March 2003. Standard & Poor's Index fell 4.2% to levels not seen since 1996. Today, non farm payrolls figures are going to show that U.S. economy continues destroying labour at a fast pace.
Dollar falls across the board
EUR/USD has pared losses posted on Thursday as the Euro was affected by the ECB rate cut and the dovish words of Trichet, who left the doors open to interest rates lower than the current 1.50%. EUR/USD fell to an Intra-day low of 1.2480 after Trichet's speech to rally afterward. At the moment the Euro is in a bullish move, past intra-week high at 1.2675 (Mar 3 high) and climbs towards resistance level at 1.27.
GBP/USD declined to an intra-day low of 1.4035 after the BoE cut rates to 0.5% but it has rallied during Asian session, having broken 1.4190/1.4200 resistance level, the Sterling trades around 1.4275 on its way to 1.4300 resistance.
The USD/JPY has experienced the Expected correction move and has dropped about 200 pips during the Asian session. After another rejection from the 99.50 resistance level, the Dollar has dropped below 98.00 and advanced downward towards 97.00 support (Feb 27 and Mar 1 low)