Published: Thu, 14 May 2009 08:01:00 +0200

Asian markets plunge after weak U.S. consumption; Euro and Pound, lower

FXstreet.com (Barcelona) - Asian markets have declined as weak U.S. consumption dampened hopes of a fast economic recovery. Euro and Pound have dropped, while the Yen consolidates at 3-week high.

All benchmark markets have posted considerable declines on Thursday. Tokyo Nikkei Index has declined 2.7%, while Hong Kong?s Hang Seng Index lost 3.2% and South Korean Kospi Index dropped 2.0%.

Investors? confidence in Asian consumer-driven economies has been hit by the second consecutive decline on U.S. retail sales, which consumption remains weak in U.S. while unemployment figures continue soaring.

Euro and Pound Pull back

EUR/USD has dropped from 7-week high at 1.3722 to an intra-week low at 1.3525 to consolidate afterwards at levels right above 1.3550. At the moment, the Euro trades at 1.3560; 0.22% below its opening level.

GBP/USD plunged from 1.5330 high on yesterday?s U.S. session, to consolidate during Asian session at between 1.5100 and 1.5150.

The USD/JPY has reached a new two-weeks low at 95.13 during Thursday?s Asian session, and the Dollar picked up slightly to levels around 95.50 at the time of writing.

By Fxstreet.com

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