FXstreet.com (Barcelona) - European markets are going through losses on early trading Wednesday with commodities leading losses as Chinese Shangai Index turned down, weighed by raw materials companies. Euro struggles to hold above support while Pound plunged on the back of BoE minutes.

Eurostoxx 50 Index drops 1.26%, while German DAX Index sheds 1.23% and the French CAC Index drops 0.88%. In the UK, the FTSE Index the FTSE index trades 0.93% below its opening level.

On the macroeconomic domain, German Producer prices posted a 1.5% decline in July, while the market expected a 0.1% decline.

The Bank of England approved the extension of its quantitative easing program to GBP175 billion by six votes against three, with Governor Merving King in favour of a larger extension to GBP200 billion.

Pound plunges after BoE minutes

GBP/USD decline from Asian session high at 1.6595 has extended to levels below 1.6400, as the release of the BoE minutes triggered a Pooed sell off from levels above 1,6450 to test 1.6390 support at the time of writing.

EUR/USD decline from 1.4170 day high on Asian session has found support at 1.4085, and the Euro remains moving in a narrow range around 1.4100 during European session so far.

USD/JPY decline from Tuesday's high at 95.30 has reached a fresh 3-week low at 94.10, and the Dollar has picked up to levels around 9430at the tiime of writing.