FXstreet.com (Barcelona) - European stock markets are going through mild advances ahead of the Fed's monetary policy meeting, led by gains on utility companies. Euro and Pound are trying to bounce from 2-week lows.
Eurostoxx 50 Index edges up 0.17% while the German DAX Index trades 0.34% up, and the French CAC index adds 0.10%. In the UK, the FTSE Index remains practically at opening levels.
Markets' slight gains have been led by strong gains by utility companies, although investors remain cautious ahead of the Fed meeting later today.
On the macroeconomic front, UK ILO unemployment rate increased to 7.8% in the three months to June, its highest level since 1996. Jobless claims rose by 24,000 in July, instead of the 20,000 increase expected.
Furthermore, Industrial Output declined 0.6% in June and 17.0% year on year, while the market consensus had anticipated a 0.3% monthly increase and a yearly decline of around 16.2%.
Euro and Pound dipped to 2-week lows
EUR/USD decline from 2009 high at 1.4445 extended on European morning to 2-weeks low at 1.4090 although the Euro managed to return above 1.4100 and trades now at levels around 1.4135.
GBP/USD retreat from 2009 high at 1.7000 extended today to levels below 1.6400, as the Pound hit 1.6390 low, to return to levels right above 1.6400, yet at the lowest levels since late July.
USD/JPY decline from 96.10 Asian session high has found support at 95.10 on early European session, and the Dollar has picked up approaching to Aug 11 low at 95.75.