European markets advance, supported by commodities; Euro and Pound appreciate

Mon, Nov 23 2009, 10:38 GMT
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FXstreet.com (Barcelona) - European markets have opened the week on strong note, with benchmark indexes posting advances beyond 1.0% with shares of energies, mining and raw materials leading gains on higher commodity prices. The Dollar has dropped against Euro and Pound.

Eurostoxx 50 Index adds 1.5%, with French CAC and German DAX both 1.5% up. In the UK, The FTSE Index rises 1.66% two hours after the opening bell.

After two hesitant sessions at the end of last week, investors have showed at ease with risk present in equity markets which, has weighed the Dollar, and boosted commodity prices, with Gold soaring to a new high at $1,167 in Asian trade.

Euro and Pound on recovery

EUR/USD weakness seen last Thursday and Friday has faded on Monday, as the pair has rallied about 150 pips during Asian and European sessions, reaching 1.4990 session high (Nov 18 high). At the moment of writing, the pair moves at 1,4980.

GBP/USD has picked up momentum on early European session to rally from 1.6460/57 support area to 1.6625; right below 1.6625 (Nov 5 and 6 high), and the Pound has turned down back to levels right below 1.6600.

USD/JPY downside attempt has failed, and , after hitting a fresh 6-week low at 88.57, the Dollar has bounced up to test 89.00 resistance, which has not given way, and the pair has eased to 88.80.

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