European markets ease on profit-taking; Euro and Pound, weaker

 @ibtimes
on January 05 2010 5:29 AM

FXstreet.com (Barcelona) - European markets are going through minor losses on early Tuesday as investors have resolved to take profits after fresh 12-month highs reached yesterday with an eye on Cardbury's acquisition issue. In FX markets, the Dollar is picking up and re-gaining ground against Euro and Pound.

Eurostoxx 50 Index trades 0.13% down while the German DAX Index declines 0.1% and the French CAC Index trades 0.17% below the opening level. In the UK, the FTSE Index drops 0.29% two hours after the opening bell.

Cardbury PLC lost 1.6% in London after Nestle's refusal to make an offer for the UK food company, after announcing the deal to buy Kraft's frozen pizza unit for $3.7 billion. Kraft affirmed its intention to use the cash from the sale to offer Cardbury's shareholders an additional partial cash alternative of 60 pence per share.

On the macroeconomic front Eurozone CPI has accelerated to 0.9% year on year in December, up from the 0.5% rate in November, and the higher inflation rate of the last 10 months.

Euro and Pound giving away gains

EUR/USD has given away on early European session, all the ground taken during Asian trade and, after rejection at 1.4485, the pair has dropped to session low at 1.4405, which so far remains intact, with the pair trading around 1.4425.

GBP/USD rejection from 1.6150 session high moments ahead of the European opening has triggered a 125 pip decline as the pair broke below 1.6050 support area to trade at levels around 1.6020 at the time of writing.

USD/JPY decline from Monday's high at 93.20 found support at 91.65 on Asian session, and the pair picked up on Dollar strength to reach levels at 92.10, to ease to levels right below 92.00 at the time of writing.

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