FXstreet.com (Barcelona) - European markets have dipped to negative territory after a slightly positive tone at the opening, on concerns over the global recovery have spread following a string of negative data. Euro and Pound have turned down from intra-week highs.
Eurostoxx 50 Index drops 1.05%, while the German DAX Index declines 1.52% and the French CAC Index trades 0.86% lower. In the UK, the FTSE Index declines 0.98% on its week opening session, as markets closed yesterday for bank holiday.
On the macroeconomic domain data was generally downbeat, starting by a increase on Euro Zone unemployment, hitting 9.5% in August, from 9.4% in July, its highest level since 1999.
Furthermore, in the UK, Manufacturing PMI dropped to 49.7 in August from 50.2 in July, against market expectations of further recovery to levels around 52.00, while consumer lending fell by GBP635 million in July from revised GBP225million increase in June, the first decrease since records are taken, in 1993.
Euro and Pound retreat from week-highs
GBP/USD recovery from 1.6185 low on Monday reached 1.6345 weehk high on early European session to turn down and plunge more than 100 pips on the back of disappointing UK data to reach levels at 1.6215 intra-day low giving away almost all the ground taken on Yesterday's U.S. and today's Asian session.
EUR/USD recovery from 1.4255 has extended to 1.4378 week-high on Tuesday's European session, to retreat afterwards to 1.4325, approaching intra-day low at 1.4320.
USD/JPY remains moving in a narrow range, although the pair edged up above intra-day high at 93.20 to hit 93.30, before turning down to levels tright above 93.00