FXstreet.com (Barcelona) - European markets are going through moderate gains on Tuesday, as Asian stock markets bounce up recovering from a negative beginning, putting an end to yesterday's setback. Euro and Pound are going through recovery.

Eurostoxx 50 Index adds 0.39%, while the German DAX Index rises 0.3% and the French CAC Index trades 0.37% above its opening level. In the UK, the FTSE index rises 0.59% in the first hours of trading.

On the macroeconomic front, UK CPI remained unchanged in July, while it rose 1.8% year on year, beating forecasts of a 0.2% monthly decline and a 1.6% increase year on year, The Pound has spiked up after the release of CPI data

Euro and Pound on recovery

GBP/USD bounce on 1.6275 month-low ha extended to levels above 1.6400 on the back of higher than expected UK CPI, spiking up to 1.6455 intra-day high. The pair is testing 1.6450 resistance at the moment of writing.

EUR/USD recovery from yesterday's low at 1.4045 has reached intra-day high at 1.4135 before pulling back to 1.4105. At the moment of writing, the Euro trades at 1.4120.

USD/JPY rebound at 94.20 low yesterday has extended to levels above 95.00 on early European session, and the pair trades at levels around 95.25 at the moment of writing.

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