FXstreet.com (Barcelona) - European markets have opened with losses on Friday after slumps in Wall Street and Asian markets, while the Euro Area's services and manufacturing sector's activity continued showing increasing weakness; Euro and pound have recovered mildly after testing support levels.

European markets have all ported losses on Friday with German DAX 3.16% lower and Eurostoxx 50 Index 3.19% down to a five-year low.

Eurozone's Preliminary Manufacturing PMI has dropped to 33.6 in Feb from 34.4 in Jan while services PMI index has dropped from 42.2 in Jan to 38.9 in Feb; to sum up, activity shows faster contraction in both cases.

The EUR/USD has bounced up from 1.2550 to the 1.2630/40 area, where it could find resistance; GBP/USD has bounced up from 1.4152 low and, fuelled by better than expected UK Retail Sales, the pair is aiming at 1.4320 resistance area.

The USD/JPY lost some ground in Asian session dropping below 94.00 level to recover slightly during the European session.