FXstreet.com (Barcelona) - Widespread feeling that the end of the crisis has come on sight, plus G20 announced commitment to do whatever is needed to help to get over the crisis, has created a wave of optimism seen in Asian and European markets as week as in Euro and Pound which have both posted sharp rallies.
European stock markets have started the week with gains around 2%; with Eurostoxx 50 2.54% up, buoyed by regained confidence in financials; Barclays Bank, Deutsche bank, and Prudential PLC have posted considerable gains.
On the macroeconomic side, Euro Zone Employment fell for second consecutive quarter in the last three months of 2008, while CPI rose in February for the first time since June.
Euro and Pound Soar
The Euro has broken resistance level at 1.2992, on its rally from intra-day low at 1.2835 and entering in levels above 1.3000 for the first time since Feb 10, although the pair seems to have found resistance at 1.3040, 1.3040 (100 day SMA), and has set back slightly, yet it remains above 1.3000 so far.
GBP/USD has confirmed a sharp upward reaction from Mar 11 low recovering all the ground lost on last weeks decline; the Pound has rallied from intra-day low at 1.3885 through Mar 9 high at 1.4180, reaching several pips short of M5 high at 1.4235, and has dropped back some pips below 1.4080.
USD/JPY has remained trading in range from 98.00 to 98.50, to post an slight upward reaction, at the moment the pair advances toward intra day high at 98.50.