FXstreet.com (Barcelona) - European stock markets are going through gains on Friday cheered by better than expected German Ifo Business Climate which has driven the Euro further up in European morning time. In the UK, the Pound has been slammed by the largest GDP slump since 1979.
Eurostoxx 50 index gains 0.89% and German DAX Index adds 1.09%, while French CAC Index trades 1.02% above its opening level. In the UK, London FTSE index adds 0.94%.
In the macroeconomic front Germain Ifo business climate index has risen to 83.7 in April from 82.1 in March, somewhat above the experts expectations off a slight increase to 83.3. Economic Expectations Index has risen to 83.9 in April from 82.1 in March, pointing out to a slowdown in the economic decline. In the UK, indicators have not been as good, GDP has contracted 1.9% in the first quarter, according to preliminary estimates, the largest decline since 1979, year on year, UK economy contracted 4.1%.
Euro rallies further; Pound slumps
Euro rally from 1.3000 dip yesterday has reached a two-week high at 1.3271 after Ifo figures were released, although the pair has pulled back afterwatrds. At the moment the Euro trades at 1.3230, 0.72% above its daily opening level.
GBP/USD instead has plunged to 1.4595 support level from around 1.4675 before GDP data, the Pound is, at the moment at 1.4602 struggling to remain above the aforementioned support zone.
USD/JPY has reached a new two-weeks low at 96.63, and at the moment, the pair trades 1.0% lower than its opening price at 97.00.
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