Fri, 18 Mar 2011 10:24:00 +0100

European markets advance fuelled by G7 agreement

FXstreet.com (Barcelona) - European markets have opened Friday's session in a positive tone, with risk appetite fuelled by G7 finance minister's agreement to act coordinately in order to prevent Yen strength, and therefore, support Japan's efforts to recover from the quake-tsunami-nuclear accident shock.

Eurostoxx 50 Index advances 0.85%, while the German DAX index rises 0.8%, and the French CAC Index 0.95% higher. In the UK, the FTSE Index adds 0.7% up one hour after the opening.

G/ commitment to intervene coordinately in currency markets has been welcomed by investors, triggering gains in Asian and European markets, and pushing the Yen lower across the board.

However, risk appetite remain subdued on concerns about the situation in Libya, after the UN approved a no-fly zone over the Arab country, authorizing air strikes against the colonel Gadaffi's forces.

Yen Lower, Euro at 2011 highs

EUR/USD really from 1.3865 low yesterday extended on early European session to a fresh 2011 high at 1.4095, where the pair found resistance, and eased to 1.4040 area.

GBP/USD recovery from yesterday's low at 1.5975 extended in Asia to retest 1.6200 resistance area where the pair found strong resistance and pulled back sharply, reaching day lows at 1.6060.

USD/JPY rallied about 300 pips on Asian session, following G7 pledge to act against Yen strength, and the pair reached 82.00 on early Eiuropean session to ease afterwards to 81.20 area.