Fri, 02 Jul 2010 08:08:00 +0200

Asian markets fall moderately, Euro through minor corrections

FXstreet.com (Barcelona) - On Friday, Asian equities posted erratic and jerky movements, resulting on most indexes trading lower yet avoiding the sharp falls seen through the course of this week. Investors were still bewildered on what to make out of yesterday's disappointing data in the US, when Wall Street took another dive after the Manufacturing and Labour market heightened worries of a fizzling economic recovery.

Markets participants also tried to adjust to the new and unusual trading conditions, as changing global variables indicate a temporary pause in market confidence, therefore shifting investor's attention off the Euro-zone debt and towards the US economic recovery pillars. The biggest test for the newly entered Q3 is yet to come, as investors await the widely expected non-farm payroll figures later today.

In Asia, benchmark indexes moved choppy through today's latest stage. The ASX-200 in Australia was down 0.17%, the Shangai Composite continued its recent bearish tone to loose 1.40%, the Hang Seng mirrored the Chinese Composite as it fell by the same amount. In Japan, traders attempted unsuccessfully to drive stocks higher, as the Nikkei neared its opening and fell by 0.05%. In Seoul, the Kospi Composite dropped 1.08%.

In Asia, the Greenback moved sideways, consolidating yesterday's losses after the volatile trading session on Thursday. The opposite is true for the Euro, as the Hegemonic currency stabilized its fluctuation range to digest its major gains yesterday. The Japanese Yen lost some ground as corrective waves popped up though the Asia session.

Major currencies were little changed, EUR/USD fell from 1.2527 (5-week high) to mark its daily low at 1.2485. Current price trekked up at 1.2495. USD/CHF jumped up to 1.0605/10 on the back of a new 6-week low at 1.0577. GBP/USD had a minor downside correction, although continues on a comfortable position slightly above 1.5150. Meanwhile, USD/JPY reached higher bands to stall out at 88.00 zone, following a sharp decline to 86.95.