FXstreet.com (Barcelona) - Asian markets have declined on Thursday, on the back of a drop in oil prices and concerns about a the consequences of the withdrawal of economic stimulus measures. Euro and Pound have pulled down from Wednesday's highs.
Hong Kong's Hang Seng Index is going through a 2.8% drop, while South Korean Kospi Index Sheds 1.4% and Chiona's Shangai Composite Index Fell 1.4%. In Japan, Tokyo Nikkei Index has risen 0.9% in the first day of the week, as markets were closed during the last three days for national holidays.
The Federal Reserve's monetary policy committee, kept interest rates unchanged and released its economic statement on Wednesday, where the Bank assesses that economic activity has improved since their last meeting in August while announcing their intention to slow down its purchases of mortgage-backed securities, which has been one of the main extraordinary measures the Central Bank adopted in order to support U.S. economy.
Euro and Pound retreat as risk appetite fades
EUR/USD has pulled down from 1.4845 high on Wednesday, on the as risk aversion increased after the Fed announced the withdrawal of economic stimulus, and the Euro fell to 1.4685 low on early Asian session, to pick up later to levels around1.4725 at the moment of writing.
GBP/USD recovery from 1.6135 low on Septt21 was capped on Wednesday at 1.6465 and the Pound declined after Fed's statement, to 1.6315 low on early Asian session, to pick up later, reaching 1.6370 at the moment of writing
USD/JPY rose on early Asian session to 91.65 high, and the Dollar has lost ground ever since breaking below 91.00 to reach levels at 90.80 at the moment of writing, with next support area 90.50/65 on sight.