Asian markets surge while forex traders brace for Fed decision

Asia’s equity markets are extending their impressive rally, with the Chinese Hang Seng Index (HSI) leading the charge. Investors are closely monitoring the EUR/USD pair, which maintains a bullish trend above 1.1241, ahead of the US Federal Reserve’s policy meeting. Meanwhile, Bitcoin remains subdued below the \$95,000 mark, and the US Dollar shows minor gains.

Asian stock markets continue their upward trajectory, outperforming their global and US counterparts. The HSI’s notable gains are a testament to the region’s economic resilience. However, as these markets approach multi-week highs, investors are cautiously optimistic, awaiting further economic indicators.

In the cryptocurrency realm, Bitcoin remains constrained below the critical resistance level of \$95,206. A decisive breakout could potentially propel it towards its December peak near \$110,000.

The Forex market has witnessed the US Dollar advancing over the past day. Since today’s Asian session open, the Euro has been the strongest major currency and the Australian Dollar the weakest one, although the numbers are probably too small to be significant. The EUR/USD currency pair remains in a long-term bullish trend and most analysts will see it that way as long as the price holds up above the key support level at \$1.1241.

Market activity is expected to remain subdued today, mirroring yesterday’s quiet session. However, anticipation builds for the US Federal Reserve’s policy meeting on Wednesday, which could introduce increased volatility.

Economic data releases have provided mixed signals. Switzerland’s Consumer Price Index (CPI) data showed no month-on-month change, contrary to the anticipated 0.2% increase. The Swiss Franc exhibited minimal reaction to this news. Conversely, the US ISM Services PMI data surpassed expectations, suggesting that the US economy might be performing better than last week’s negative GDP figures indicated.

Fidelity Asian Values Plc (LON:FAS) provides shareholders with a differentiated equity exposure to Asian Markets. Asia is the world’s fastest-growing economic region and the trust looks to capitalise on this by finding good businesses, run by good people and buying them at a good price.

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Written by: Amilia Stone

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