Asian markets today continued their optimistic spark and resumed the gains as investors unwind some of their jitters and further believe in the ongoing global growth.
The market today was buoyed by good earnings and the positive manufacturing figures from the US yesterday which uplifted expectations for stability and continued recovery. The MSCI Asia Pacific Index added 1.2% to 139.14 as of 13:33 PM in Tokyo.
Surely the risk appetite is improving and especially as the positive outlook for global growth accompanied unwinding fears over the protests in Egypt as the situation is stable despite continued objection from the people over the government's course of action and after Mubarak announced yesterday he will step down in September and insure a smooth transition, though still the public seemingly are not content with this decision and still demand his immediate resignation.
Still, the market conditions are improving and we can see the Japanese yen correcting some of the gains yesterday and weakened versus the dollar on declining haven demand as Asian stocks rose. The USDJPY moved slightly higher today from the low of 81.33 to set the high of 81.60 and currently hovering around 81.49. We still expect further bearish movement for the pair as the rise today is merely correctional, where stability below 81.85 supports the continued bearishness.
For the euro, it moved in a tight range this morning after withholding the upside bias yesterday. The euro traded steady near yesterday's highs to unload the negative momentum and currently fluctuating around 1.3838. The pair so far recorded the low of 1.3818 and the high of 1.3861, and with stability above 1.3760 we expect the pair to continue to the upside targeting 1.4000.
Meanwhile, sterling is hovering higher versus the dollar today extending the gains into the third day around 1.6169 recording the high of 1.6177 and the low of 1.6126. With stability above 1.6060 the upside move is valid and likely to be volatile with the buying saturation on momentum indicators.