FXstreet.com (Barcelona) - European markets are going through losses on Monday as renewed concern about bank's health has unleashed a wave of risk aversion. The Dollar continues its rally against Euro and Pound.
European markets are posting losses beyond 3% as investor's trust on Banking has weakened after Geithner's observing that some banks might need further governmental aid. Eurostoxx 50 is dropping about 3.50% by midday in Europe, while German DAX Index loses 3.52% and French CAC slides 2.84%.
On the macroeconomic side, European Economic sentiment has dropped in March to its lowest level since records are taken back in 1985. In the UK, mortgage approvals rose to 38,000 in Feb from 32,000 in Jan; reaching their maximum level since May 2008.
Dollar higher against Pound and Euro
The Euro has dropped more than 400 pips from Friday's high at 1.3590 to 1.3150 levels reached on Monday's European session, adding to a corrective decline from 1.3740 high on Mar 19 and 23. Today, the Euro has dropped from 1.3285 Asian session high, to levels hovering above 1.3155 level.
GBP/USD has continued depreciating from 1.4780 high reached last week. After a 250 pip decline on Friday, the Pound closed at 1.4320 to drop further in Asian and European sessions reaching a low at 1.4110 to bounce to levels above 1.4160 at the time of writing.
USD/JPY decline from 98.35 high in Asian session seems to have found support at 95.95 level, and the pair has gained some pips, although has been unable to remain above 96.60 (Mar 6 low), and trades several pips below he mentioned level at the time of writing.