FXstreet.com (Barcelona) - European stock markets are going through moderate gains on Wednesday in a session dominated by caution ahead of the U.S. banks' stress test. Euro and Pound have posted slight increases recovering, partially, positions lost during previous sessions.

Eurostoxx 50 Index gains 0.43% while German Dax Index edges up 0.21%, and French CAC Index rises 0.81%. In London, the FTSE Index trades 0.53% above its opening level.

On the macroeconomic respect, Euro Zone retail sales have posted the largest yearly decline on record in March; 4.2% down from March last year. In the UK, Halifax house prices Index declined 1.7% in April and went 17.7% down year on year.

Furthermore Services PMI in the UK increased to levels approaching those indicating expansion on the sector's activity, 48.7 in April, from 45.5 in March, Sterling rose after the release of PMI data.

Sterling and Euro recover partially

EUR/USD has managed to recover during the European session some of the ground lost during U.S and Asian session, and from intra-day low at 1.3250, the Euro has reached levels above 1.3300. At the moment, the Euro trades at 1.3320.

GBP/USD has bounced at 1.4990 low ahead of the European markets opening and the pair has grown to maximum levels at 1.5120, although Cable has not been able to hold above 1.5100 and at the moment of writing trades at 1.5095.

USD/JPY attempt to return to yesterday's levels has been aborted and after bouncing from 97.90 intra-week low, the Dollar has been unable to break through 98.50/60 resistance area and the pair returns to levels close to 98.00.

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