FXstreet.com (Barcelona) - A wave of risk appetite has returned to markets after the Chinese Government announced new measures to stabilize economy, European stock markets are going through gains, and Pound and Euro recovered mildly; Yen was crushed across the board.
Chinese government announced its plan to increase spending by 22% in order to reactivate the country's economy, Stock markets all over the world have celebrated the announcement with considerable losses, Nikkei Index in Tokyo went up 0.9% while European markets are going through gains above 2% at midday time in Europe.
In the macroeconomic front PMI's of the Eurozone and UK have shown again the weakness of the services sector, while Shop Prices Index have increased at a 1.9% year on year pace in February; it was 1.1% in Jan.
USD/JPY rallies, Euro and Pound up
The Euro seems to have decided to go north after a session of hesitation around 1.2515 resistance line. EUR/USD extends, thus, its recovery move from fresh 3 month low at 1.2455 reached during Asian trading session.
GBP/USD has made a recovery move from 1.3980 and the pair has set an assault towards the 1.4090 resistance level. If the Pound moves above here it could confirm a bottom at 1.3980.
The USD/JPY has rallied to a maximum level of 99.40, past resistance level at 98.60/75 area; the Dollar has set a fredh 4 mnth high and advances towards 99.70 (Oct 28 high) and then the 100.00 psychological resistance level.
The GBP/JPY has broken March 3 high at 138.70 and above 139.52, the pair advances towards Feb 26 higth at 140.65 while the EUR/JPY has broken 124.00 resistance and is struggling to remain above there in order to set an assault towards the Feb 27 high at 124.71.