FXstreet.com (Barcelona) - European markets have followed the path of Wall Street and Asia and are posting gains on banks recovery; the Pound has rallied, Euro consolidates at two-week high and the Dollar Yen returns above 98.00.
Following gains on banks and financial shares, the feeling of the financial turmoil starting to settle down has produced stock markets rallies worldwide; Eurostoxx 50 has added 2.07 by midday CET, German Dax rose 1.74% and French CAC went 2.39% up.
On the macroeconomic side, Canadian unemployment has increased by 82K in Feb instead of the 50K expected. Jobless rate has risen from 7.4% to 7.7% the largest level in more than five years.
Pound rallies to 1.4000
GBP/USD has been the biggest mover of the session; against the Dollar, the Sterling has moved from intra-day low at 1.3863 to test 1.4040 Mar 6 low, although 1.4040 has not given way so far. EUR/GBP sell off has supported the Pound's rally; the Euro has dropped to around 0.9190 from intra day high at 0.9293, which means giving away one third of its gains from 90.00 on Mar 9.
EUR/USD rally from yesterday's low at 1.2732 has capped at 1.2945 resistance line, and the pair has entered into a consolidation pattern, trading between 1.2865 and 1.2945.
USD/JPY has rallied from intra day low at 97.15 to be rejected at its first attempt to break 98.55 resistance level, and, at the moment, the pair withdraws towards 97.90 support level.