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European markets awaiting BoE and ECB at negative levels; Euro and Pound bouncing up

Thu, Nov 5 2009, 10:12 GMT
http://www.fxstreet.com

FXstreet.com (Barcelona) - European markets are going through losses, with profit taking dominating the session ahead of ECB and BoE's monetary policy decisions. Euro and Pound are bouncing timidly after declines suffered during Asian session.

Eurostoxx 50 Index declines 1.1%, while German DAX Index drops 1.0% and the French CAC Index sheds 0.9%. In the UK, the FTSE Index declines 1.0% in the first hous of trading.

On te macroeconomic domain, UK Manufacturing output increased 1.7% in September while it dropped 9.3% year on year, and industrial output rose 1.9% on the month, the largest increase since July 2002, and it fell 10.2% year on year. Furthermore, Eurozone retail sales have dropped 0.7% in September, and 3.6% year on year, well beyond markets consensus for a 0.2% monthly decline and 2.6% drop year on year.

Euro and Pound, attempting to resume rally

EUR/USD decline from 1.4900 high after FOMC statement has found support at 1.4815, and the Euro piked up on early European trade but it has been unable to break above 1.4855 and remains in range at 1.4840 at the moment of writing.

GBP/USD decline from 1.6600 resistance level has found support at 1.6465, and the Pound has advanced during European session, reaching levels 100 pips higher to cap at 1.6565 and ease to 1.6540 at the moment of writing.

USD/JPY decline from 91.30 resistance has extended during European session, with the Dollar breaking below 90.30 to attack 90.00 support level, under pressure at the moment of writing.

• EUR/USD
• GBP/USD