European markets advance after weak NFP with Dollar weakening and Gold soaring

By IBTimes Staff Reporter | January 11 2010 5:00 AM

FXstreet.com (Barcelona) - European markets are going through gains on Monday as investor's risk appetite increased after weak U.S. non-Farm payrolls report added reasons for an extended period of low interest ratesd ioin the U.S. The Dollar has dropped across the board while Gold soared to fresh highs.

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Eurostoxx 50 index advances 0.7%, while German DAX Index rises 0.8%, and the French CAC Index ads 0.9%. In the UK, the FTSE Index advances 0.97% in the first hours of trading.

Basic resources are leading gains on Monday after Gold spot soared from levels around $1,137 tpo $ 1,158, fresh 4-week high during early Asian session.

On FX markets Dollar continues trending lower against most currencies, weighed by a weaker than expected non-Farm payrolls report.

Euro rallies to multi-week highs

EUR/USD rally from 1.4265 low on Friday -fuelled by weaker than expected NFP figures- extended on Asian session, with the pair reaching 1.4535 high before consolidating in a range between 1.4480 and 1.4535 during early European session.

GBP/USD recovery from 1.5895 low on January 5 has extended to levels past Friday's high at 1.6110, to a session high at 1.6145 so far. At the moment, the Pound trades at 1.6120; 0.35% above the day opening price.

USD/JPY decline from Thursday's high at 93.75 extended during Asian session to 92.15 low, to attempt recovery on early European trade, reaching levels at 92.50 area at the moment of writing.

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