European markets advance on news about Dubai's emergency loan; Euro picks up

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FXstreet.com (Barcelona) - European markets are going through advances beyond 1.0% Monday as news about Abu Dhabi's $10 billion bailout to Dubai has relieved investors, and favoured the banking sector; in FX markets, the Euro is trimming Friday's losses, while Pound remains trading in range.

Eurostoxx 50 and German DAX indexes are both going through advances by 1.0% advances, while the French CAC Index rises 0.8% in the first hours of trading. In the UK, the FTSE Index rises 1.0%.

Abu Dhabi has granted a $10 billion loan to neighboring Emirate of Dubai to re-pay part of the $60 billion debt acquired by government owned Dubai World and its property unit Nakheel.

On the macroeconomic c domain, Eurozone employment declined 0.5% in the third quarter, the same as in the previous quarter while it dropped at a 2.1% year on year pace, following a 1.8% yearly decline in the second quarter. Furthermore, Eurozone Industrial Output declined 0.6% in October, and 11.1% year on year.

Euro trims Friday's losses

EUR/USD decline from 1.4770 high on Friday, found support at 1.4585, and the pair picked up during Asian session, to consolidate in a range between 1.4650 and 1.4685 during European session.

GBP/USD continues trading rangebound within a band from around 1.6200 on the downside to 1.6340/50 on the upside. decline from Friday's high at 1.6340 high found support at 1.6190 low during Asian session, and the Pound biunced up to be rejected at 1.6300 and drop back to 1.6215 on early European session.

USD/JPY is pulling back from Friday's high at 89.80, with the pair breaking below 89.00 area on early Asian session to reach day lows at 88.30/35 so far.

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