European markets advance supported by basic resources; Yen, stronger

By @ibtimes on

FXstreet.com (Barcelona) - European markets are going through mild advances on Wednesday boosted by basic resources sector, with gold reaching new highs. Euro and Pound remains sideways and the Yen keeps appreciating across the board.

Eurostoxx 50 Index edges up 0.2%, while German DAX Index advances 0.4%, and the French CAC Index trades 0.4% higher. In the UK, the FTSE Index advances 0.2% in the first hours of trading.

Gold prices have rallied to a fresh high at $1.045.65 oz, which has boosted the mining sector. Eurostoxx basic resources sub sector added 0.3%.

On the macroeconomic front, Eurozone second quarter's Gross Domestic Product has been downwardly revised, to a 0.2% decline, and a 4.8% contraction year on year, from -0.1% and -4.7% previously estimated. The Euro remains moving sideways.

Euro and Pound, sideways, Yen stronger

USD/JPY has continued depreciating during the day, as the Dollar dipped below 88.20 support level to reach a fresh 8-month low at 88.06. At the moment, the Dollar trades around 88.20, 0.60% below its day opening level.

EUR/USD remains moving in a range from 1.4700 to 1.4740, consolidating after its rally from 1.4480 low on Friday was capped at 1.4765 high on Tuesday.

GBP/USD drop from 1.6050 high on Tuesday has extended to 1.5860 low on Tuesday, and the pound attempted to pick up from here, but, capped at 1.5930 area, the pair returns to levels below 1.5900 at the time of writing.

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