FXstreet.com (Barcelona) - European markets are drifting between positive and negative levels in the first trading hours on Thursday. The Dollar continues trading slightly upwards against the Yen while the Pound's rally seems to have halted on weaker than expected UK retail sales.

Stock markets have opened on a hesitant pace, while Eurostoxx 50 Index goes through losses by 0.27%, German DAX adds 0.23% less than two hours after the opening.

On the macroeconomic front, weaker than expected retail sales have shown how U.K. consumer demand is still suffering by the economic slowdown. The Pound has experienced a considerable bearish reaction to the figures.

Dollar strengthens against Pound and Yen

The Pound has tumbled further as retail sales in UK showed weaker then expected results on February's retail sales. After rejection at 1.4620/35 resistance level, the Pound has dropped below 1.4575 immediately after the release of retail sales figures, approaching levels close to 1.4515 (Mar 24 low).

USD/JPY continues advancing to higher levels, after having bounced from 97.10 yesterday the Dollar has reached above 98.00 level and remains there, crawling towards 98.40.

EUR/USD is trading in a range from 1.3540 and 1.3600.