FXstreet.com (Barcelona) - European markets are going through considerable declines on morning trade as yesterday's rating downgrade for Wells Fargo continues hurting financials. Euro and Pound have retreated from yesterday's highs.

Eurotoxx 50 index sheds 1.75% while the German DAX Index drops 1.8%, and the French CAC Index declines 1.7%. In the UK, the FTSE Index trades 1.6% below the opening levels.

On the macroeconomic front, U.K retail sales have remained flat in September, against market expectations of 0.5% increase. Year on year, retailers have seen their sales volume growing at a 2.4% pace in September, while market expectations were for a 2.7% increase.

Furthermore, BoE's Tucker has scared the Pound suggesting that the Bank's Monetary Policy Committee might need to boost quantitative easing program

Euro and Pound pull down from highs

EUR/USD has dropped below 1.5000 on its retreat from yesterday's 14-month high at 1.5045, and the Euro has reached 1.4140 low. At the moment, the Euro trades at 1.4955.

GBP/USD has given away half of the ground gained yesterday as retreat from 1.6637 high has reached an intra-day low at 1.6485. At the moment, the Pound trades at 1.6520.

USD/JPY rally from 90.80 session low has been capped at 91.60 on earl European session, and the pair eased to 91.25 to pick up afterwards and return, at the moment of writing, to 91.35.