FXstreet.com (Barcelona) - European markets continue trading in negative levels, as profit-taking dominates on growing concern about the sustainability of recent rally. Euro and Pound are going through nervous consolidation after Tuesday's declines.

Eurostoxx 50 Index drops 0.8% with German DAX Index 1.64% down and the French CAC Index trading 0.8% below its opening level. In the UK, the FTSE drops 0.52%.

On the macroeconomic front, Euro Zone Producer Prices declined 0.8% in July, and 8.5% compared to July last year, the largest PPI decline on record. Furthermore,Euro Zone GDP was left unrevised at 0.1% decline in the third quarter, while the year on year decline was revised down to a 4.7% drop, from -4.6% previous estimation.

Euro and Pound, sideways

EUR/USD bounced at 1.4185 low in Asian session to reach 1.4195 right before European session opening and return to levels around 1.4220 at the time of writing. The Euro remains consolidating around 1.4220 after Tuesday's drop from week high at 1.4375.

GBP/USD moves up and down in a range from 1.6115 and 1.6185 after decline from 1.6380 high on Tuesday. At the moment, the Pound trades at 1.6160 struggling where the 20 hour MA lies, after bouncing at 1.6115.

USD/JPY decline from 93.45 high on Tuesday's u.S. session has extended to a fresh 6-week low at 92.35 as the Yen strengthened on negative stock markets. At the moment of writing, the Dollar trades around 92.60.

.