FXstreet.com (Barcelona) - Asian markets have bounced up on Thursday, after the Federal Reserve observed signs of stabilization in U.S. economy, after the deepest recession in decades. Euro and Pound have recovered partially losses from previous days.
Japanese Nikkei Index has risen 1%, while Hong Kong's Hang Seng Index added 2% and South Korean Kospi Index went 0.8% up. Markets in Australia, Taiwan and Singapore have `posted advances nearing 2.0% each.
Optimism returned to Stock markets after the Federal Reserve said that U.S. economy seemed to be leveling up and added that interest rates will be kept at levels near zero for some time. Furthermore, the Federal Reserve informed about its plan to buy government securities in order to keep mortgage rates and other consumer debts, lower.
Euro and Pound pick up
EUR/USD has recovered part of the ground lost since Friday, and, after bouncing at levels right below 1.4100 on Wednesday, the Euro has returned to prices above 1.4200 during Asuian session, despite a spike down to 1.4120 post fed. At the moment, the Euro advances at levels around 1.4240.
GBP/USD decline from levels around 1.7000 last Friday bottomed on Wednesday at 1.6390, to pick up to levels above 1.6500, although the Pound spiked down to 1.6420 after Fed. At the moment, the Pound trades around 1.6550.
USD/JPY decline from 97.77 high on Friday found support yesterday at 95.10, and the Dollar recovered some of the ground lost during the week to reach levels above 96.00 at the time of writing.