FXstreet.com (Barcelona) - European markets have opened Thursday's session on weak note as the current year's rally seems to have lost steam with U.S. economy giving signs of weakness amid economic recovery. Euro and Pound are dropping sharply.

Eurosttoxx 50 Index dips 0.60%, while German DAX Index declines 0.50%, and tthe French CAC Index sheds 0.65%. In the UK, the FTSE index sheds 0.37% in the first hours of trading.

On the macroeconomic domain, the most remarkable event has been UK retail trade, which has risen 3.4% year on year in October, its largest advance in the last 17 months. Furthermore, UK Public sector net borrowing reached GBP11.4 billion in October, and GBP86.9 billion in the first half of the financial year smashing the previous record of GBP33.9 billion one year earlier.

Euro and Pound drop lower

EUR/USD was rejected at 1.4990, again in the 1.5000 are, and the pair declined during Asian trading hours and extended to the downside at European opening times, with a downmove below 1.4900 to hit 1.4840 low.

GBP/USD rejection at 1.6875 on Monday and Tuesday has extended to a fresh intra-week low on Thursday at 1.6640, and the Pound has bounced up to find resistance at 1.6685/00 previous support.

USD/JPY was rejected at 89.50 high o Wednesday, to reach levels below 89.00 at European opening, and the Dollar attempted a recovery move, which has been capped at 89.10, sending the pair back to current levels tight below 89.00.