FXstreet.com (Córdoba) - Wall Street had the best day in month and rose for the first time in the week. A report showed that the U.S. economy expanded at a 3.5% annual pace in the 3Q and fueled stocks. Dollar and Yen tumbled after an increase in risk appetite.
The Dow Jones rose 200 points to 9,963 and the S&P 500 jumped 2.25%. Markets in Europe rose more than 1% on average. In Asia stocks fell but it is expected a positive opening on Friday's session following the rally in Wall Street. Commodities recovered from previous losses and posted important gains. Crude oil is back above $80 a barrel and gold trades at $1,047.
James Hyerczyk, analyst at ForexHound.com, comments: Technically, the markets are only retracing the recent down move. A close on the high and a follow-through rally tomorrow will be a better indication that the correction is over. Although the report was bullish, it is stale data. Traders want may want to see if the economy continues to improve before committing new money to the market. Many investors feel that this report was already priced in and that after today's rally and 50% retracement of the recent break, the correction will resume.
The Yen was the worst performer on Thursday and tumbled across the board. Greenback rebounded at two week highs and fell sharply, rising only against the Japanese currency. Currencies tied to commodities rallied to the upside erasing Wednesday's losses.
Korman Tam, from Forexnews.com, affirms: The euro recouped its previous session losses on the heels of the stronger than expected advanced reading of Q3 GDP. The single currency popped up above the 1.48-figure to stabilize around the 1.4850 mark against the greenback in Thursday trading. The Eurozone economic reports released overnight included Germany's October unemployment data, and Eurozone sentiment surveys.