European markets, down on week opening, Euro and Pound weaken
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European markets, down on week opening, Euro and Pound weakenFITITOL–>FXstreet.com (Barcelona) – European markets have opened the week with losses, following a decline in oil prices and amid uncertainty about the pace of economic recovery. Euro and Pound have dipped further on European session so far.
Eurostoxx 50 Index drops 1.71%, with German Dax Index 1.49% down, and French CAC Index 1.41% below its opening level. In the UK, FTSE Index drops 1.02% in the first hours of trading.
Oil prices have dropped below th4e $70 per barrel on Stronger U.S. Dollar, which has driven gasoline prices down, together with equity markets.
On the macroeconomic domain, German business confidence Index has improved in June, showing that the end of the current recession is approaching. Ifo Business climate index has risen to 85.9 in June, from 84.2 in May, the third increase in a row, while the business expectations index has risen to 85.9 in June from a revised 84.3 in May.
Euro and Pound dip further
EUR/USD decline after testing 1.4000 resistance on Friday has extended during Monday’s European session to levels below 1.3870 support, with Euro hitting 1.3850 intra-day low. At the moment the Euro trades around 1.3865.
GBP/USD has opened the week with a weak pace and, after being rejected at 1.6505, the Pound has dropped to 1.6400 support level to pick up to levels around 1.6440 at the time of writing, in an attempt to rise over intra-day resistance at 1.6450.
USD/JPY is consolidating at levels between 95.75 intra-day support and 96.30 on the upside, after its decline from 97.15 high reached on Friday.
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