FXstreet.com (Barcelona) - European stock markets are shifting from positive to negative territory after a slightly positive tone at the opening. Euro and Pound tried to reach higher levels during the European session but sellers kept European currencies at the upper side of previous flat trading ranges.

Eurostoxx index edges down 0.7% at midday time in Europe while French CAC Index edges up 0.7% and the German DAX Index rises 0.20%. London FTSE index drops 0.29%.

In the macroeconomic domain, UK Retail prices index declined 0.4% year on year in March, its first annual drop since 1960. Afterwards the ZEW Institute released an improvement of Germans' economic expectations index to a level of 13.0 in April from -3.5 in March, well above the 3.8% level expected by market analysts.

Euro and Pound attempts to break higher, capped

Euro and Pound went through momentary rallies after better then expected ZEW results, breaking through intra-day highs, although, in both cases, the pairs drew back shortly afterwards.

EUR/USD rebound from 1.2900 low hit in early European session reached at a 1.2990 intra-day low, although resistance level at 1.2990/1.300 did not give way and the Euro stepped back to levels right above 1.2950

GBP/USD has bounced up at 1.4775 on early European session to reach an intra-day high at 1.4608 after ZEW figures, although the pair could not remain above 1.4600 for long and dropped back to levels around 1.4565.

USD/JPY dropped to 97.70 low in Asian session to hit a intra-day high at 98.50 during European trading. The pair seems to be consolidating between the mentioned levels after last day's decline.

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