Monday 29 June 2009

Forex: European markets advance; EUR and GBP in recovery path (Barcelona) - European stocks are recovering its initial losses on concern on economic recovery and all of its markets are rising so far today. Oil is trading close to 69.25 dollars by barrel, Zhou Xiaochuan says that China will grew 8% or more in 2009. Euro and Pound are rising in recovery path, USD/JPY is fighting for the 95.50 level.

EuroStoxx 50 is rising 0.32% so far today, DAX XETRA posts 0.46% gains, CAC 40 advances 0.48%, AEX rises 0.51% and the IBEX 35 is reaching 0.65% increases so far today. On the other hand, Nikkei Index has closed its Monday session with 0.95% decline.

Zhou Xiaochuan, from PBOC, has affirmed that China 2Q economy has been far better than the previous quarter and the PBOC expects to improve more in 3Q and 4Q. According to Zhou, China will grew 8% or more in 2009

GBP/USD has recovered all of it initial losses after finding support at 1.6470 and rising to post 1.6549 as fresh intra-day high. EUR/USD has rebounded at 1.3995 to rise to levels close to 1.4050.

Anna Coulling, analyst at Master The Markets, comments that traders have been moving to sell the Euro in a thin market Monday: "Looking ahead to later today, the US dollar may continue to move in the 94.80 to 97.00 USD/JPY trading range once again, before Thursday's U.S. June non farm payrolls index, a closely watched indicator of the health of the U.S. economy, which may finally inject some much needed direction into this lack lustre pair. Ahead of the data, yen selling pressure from Japanese mutual funds for portfolio adjustment may offset exporters' yen buying to close accounts at the end of June."

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