FXstreet.com (Barcelona) - Despite a mild positive start, European markets are going through slight negative levels while macroeconomic indicator show the reality of the economic slowdown. The Pound has dropped lower and Euro's recovery attempt has been capped.
Eurostoxx 50 Index loses 0.5% and midday in Europe, and German DAX Index drops 0.6% , French CAC Index is also 0.6% down.
Gloomy macroeconomic data from Germany, with Ifo Business Climate index deteriorating to a record low in March, and UK CBI retail sales have slapped investors in the face, pointing out to an economic recovery quite further than thought. The feeling can well deepen after U.S. New home sales and Durable Goods Orders are known.
Pound drops lower; Euro recovery stalled
The Pound has been the loser of the session, reversal from 1.4775 high reached on March 24 has extended below 1,4595 after real sales figures were released. The PoundÂ´s bearish momentum seems to have strengthened, and the pair advances towards 1.4535/45 potential support zone.
The Euro, which had gained more than 100 pips from 1.3415 reaching a maximum level around 1.3530, has turned down to test 1.3495 support level which, so far remains unbroken. At the moment of writing the Euro remains between exponential moving averages in the hourly charts.
USD/JPY remained little moved during the European session, remains in a narrow range from 97.35 to 97.90.