FXstreet.com (Barcelona) - European markets are trading lower on Tuesday in the first hour of trading, as investors seem to be taking profits after the five -day rally, Euro and Pound remain in range after yesterday's rallies, and USD/JPY droped back to the last days' range.
European markets are going through losses from 0.93% in the German DAX to 1.87% in Dutch AEX; Eurostoxx 50 Index is 1.05% down. Banks have been punished on Tuesday after American Express reported higher delinquency rates; ING Groep NV and BNP Paribas SA have posted drops beyond 2%.
USD/JPY attempt to rally above 98.60 resistance level, was capped at 98.85. The Dollar has turned around dropping below 98.60, getting back to the flat trending channel it has been trading during the last three days, between 98.00 and 98.65. Volatility is low.
Euro and Pound are consolidating at high level after yesterday's rally. After its decline from 1.3035 intra day high at late Asian session , the Euro trades some pips below 1.2992 Feb 23 high. Volatility has declined and bollinger bands have tightened. A breakout seems possible, and German ZEW economic survey, scheduled at 10:00 could well trigger it.
The Sterling is trying to pick up from 1.4040 support level, after having declined from Asian session high at 1.4135, at the moment reaches minor resistance level at 1.4070.