FXstreet.com (Barcelona) - European markets are going through slight declines with investors taking profits after secveral days of gains as caution increases with stock indexes reaching relatively high levels and economy giving mixed signals about the pace f recovery. Euro is pulling back from 1.5000 area.
Eurostoxx 50 Index trades 0.25% down, while German DAX Index drops 0.18%, and French CAC Index dips 0.27%. In the UK, the FTSE Index sheds 0.3% in the first hours of trading.
On the macroeconomic domain, UK CPI rose 0.2% in September and 1.5% year on year, up from 0% monthly and 1.1% year on year, the first acceleration on the yearly rate in a year. Furthermore, Euro Zone Trade Balance posted a EUR3.7 billion surplus in September, against market expectations of a EUR2.3 billion deficit.
Euro weakens further
EUR/USD failure to break above 1.5000 resistance level has triggered a decline of nearly 100 pips on the day, as the pair broke below 1.4930/40 support and trades at 1.4910 intra day low at the moment of writing, 0.42% below its day opening level.
GBP/USD rally from yesterday's low at 1.6670 has been twice capped at 1.6870/75 area and the pair eased to levels around 1.6830 at the moment of trading, with intra-day low at 1.6800.
USD/JPY remains trading at the lower side of 89.00 after bouncing at 88.75 low for ther second time in two days. At the moment, the Dollar trades right below session high at 89.15.