FXstreet.com (Barcelona) - European markets have opened the week on weak note, as investors fear the consequence of the increase on protectionism in U.S./China trade. The Pound has continued declining, while the Euro hovers right above Asian session low.
Eurostoxx 50 Index declines 1.45%, the same declines are seen in German and French benchmark indexes. In the UK, the FTSE Index sheds 1.09% in the first hours of trading.
In absence of key economic reports on Monday, traders are cautious on the back of the recent trade issue between U.S. and China, with U.S. administration putting steep import duties on Chinese tires, and Chinese authorities singling out U.S. automotive product imports.
Pound dips lower
GBP/USD decline from Friday's high at 1.6740 has extended lower during European session as the pound dipped below 1.6550. At the moment of writing the Pound trades at 1.6535; 0.9% below its day opening level.
EUR/USD decline from 1.4635 high on Friday 11 found support at 1.4515 ahead of the European opening, and the Euro launched a shy attempt to pick up, although the pair was capped at 1.4573 and sent back to 1.4530 at the time of writing.
USD/JPY has continued picking up after bouncing at 90.20 on Asian session, and the Dollar reaches levels above 90.65, Asian session high, reaching 90.80 level at the time of writing.