FXstreet.com (Barcelona) - European stock markets are going through moderate advances on Thursday, ahead of the European Central Bank's monetary policy decision. Euro and Pound pick up, approaching intra-week highs, trimming losses from Tuesday's selloff.
Eurostoxx 50 Idex rises 0.38%, while German Dax index edges up 0.2% and the French CAC Index t5rades 0.23% above its opening level. In the UK, the FTSE Index adds 0.15% higher.
On the macroeconomic front UK services PMI shows further growth in the sector's activity, reaching a 54.1 reading in August, from 53.2 in July, which has fuelled the Pound to test intra-week high at 1.6375.
Investors remain cautious ahead of ECB's monetary policy decision, and its subsequent press conference and Friday's U.S. Non-Farm payrolls report.
Pound erases Tuesday's losses
GBP/USD rally from 1.6115 intra-week low hit on Wednesday, has extended during European session, as the Pound, fuelled by strong UK PMI data, has rallied from levels around 1.6300 to test 1.6375 intra-week low, which, so far, remains intact, as the Pound moves at 1.6350
EUR/USD recovery from 1.4190 intra-week low has extended on early European session, although Euro recovery has been capped at 1.4310 area, and remains moving in a range from 1.4285 to 1.4360, around the 61.8% Fib retracement of Tuesday's decline.
USD/JPY continues ts slow recovery from 91.95 low, as the pair rose during European session, to intra-day high at 92.55, with the 20-hour SMA working as support around 92.25.