FXstreet.com (Barcelona) - European markets are fluctuating at very low levels as recent economic indicators have failed to give a clear idea about the direction of global economy; Pound has plunged on BoE King's comments.
Eurostoxx 50 Index trades 0.1% down, while the German DAX Index drops 0.3% and the German CAC Index edges up 0.1%. In the UK, the FTSE Index trades 0.1% below its opening level.
On the macroeconomic side, German Economic Expectations Index has risen to 57.7 in September, higher than the 56.1 reading seen in August, although lower than the 59.0 reading forecasted by the analysts. The assessment of the current economic conditions has improved to a level of -74 in September from -77.2 in August.
Pound Plunges on BoE's King comments
GBP/USD, which had reached a 1.6660 high on early European session, reversed sharply as BoE King explained that the Bank is considering to reduce it's deposits rate in order to discourage banks from accumulating reserves. The Pound plunged from 1.6660 intra-day high to levels below 1.6500. EUR/GBP supported the Dollar soaring from 0.8770 to a fresh 3-month high at 0.8855.
EUR/USD pull down from 1.4653, 9-month high reached on Monday has extended during European session, and the pair has tested 1.4580 support, which has remained intact, sending the Euro back to levels right above 1.4600.
USD/JPY has remained moving in a range from 91.00 to 91.25 during the European session, consolidating after its rebound from 90.20 low on Monday.