FXstreet.com (Barcelona) - Risk appetite continues dominating the markets as a consequence of Chinese government's announcement to increase public spending in order to reactivate its economy, Wall Street is posting gains for the first time in six days and the Euro and Pound are appreciating
Stock markets in the U.S. have opened with gains above 1.50% on Wednesday following gains in Europe and Asia, despite rather grim macroeconomic data. ADP employment report has advanced another large decline on non-farm payrolls on February, while the ISD Index has shown that economic activity in the Services sector contracted further in February.
Euro and Pound extend recovery; USD/JPY stalls below 100.00
Despite a sudden reaction below 1.2550 support level after a worse than expected ADP figures, the Euro has pulled together and has recovered lost ground breaking 1.2550 to reach 1.2580 so far on its way towards 1.2600.
The Sterling continued its recovery, breaking 1.4090 resistance area ahead of the U.S. session opening bell and reaching 1.4135 where it has been rejected to drop back towards 1.4090 again.
USD/JPY has rallied about 100 pips on early European session breaking resistance at 898.70 but the bulls seem to have lost strength and 99.50 seems a rather strong level to take. The Dollar has been moving on a range between 99.30 and 99.45 during the last hours.