FXstreet.com (Barcelona) - European markets are going through considerable advances on Thursday following a positive start of U.S. earnings season and further advance on basic resources. Euro and Pound have rallied to last weeks' range tops.

Eurostoxx 50 Index advances 1.5%, while German DAX Index advances 1.3%, and the French CAC Index advances 1.51%. In the UK, the FTSE Index trades 1.0% higher in the first hours of trading.

Risk appetite has improved on the back of Alcoa's third quarter's profits. The aluminum producer swung into profits after three consecutive quarters with losses. Alcoa's shares have advanced 8.2% in Frankfurt market.

Euro and Pound testing resistance areas

EUR/USD remains struggling against 1.4770 resistance on rally from 1.4650 low on Wednesday; after having hit fresh two-week high at 1.4788.

GBP/USD rally from 1.5860 low, has extended to 1.6075, one-week high, although the Pound has eased to levels below 1.6050. At the moment the pair trades at 1.6040; 0.50% above its day-opening level.

USD/JPY recovery from 88.00 low on Wednesday was halted at 89.40, and the Dollar returned to levels right above 88.00. During European session, the pair has been moving between 88.15 and 88.40.