FXstreet.com (Barcelona) - European markets have opened on strong note on Thursday following the trail of Wall Street and Asian markets, and supported by higher commodity prices. Euro and Pound continue on recovery reaching intraweek highs.

Eurostoxx 50 Index adds 1.48%, while the German DAX Index rises 1.40%, and the French CAC Indes rises 1.55%. In the UK, the FTSE Index trades 1.04% above its opening level.

On the macroeconomic domain, UK retail sales posted a 0.4% increase in July and a 3.3% jump year on year, the largest annual increase since May 2008 advance, which buoyed the Pound toa week high, to drop afterwards on the back of UK budget deficit's increase; Public Sector Net Borrowing rose above expectations as corporate tax revenue plunged.

Euro and Pound, steady at higher levels

GBP/USD rebound at 1.6375 Wednesday's low, spiked up to levels above 1.6600 on the back of higher than expected retail sales, reaching intra-week high at 1.6610 to withdraw to levels around 1.6540 on the back of higher than expected public deficit.

EUR/USD remains a consolidating at intra-day highs above 1.4210 and capped by 1.4250/65 area, after having rallied from 1.4085 low on Wednesday.

USD/JPY rally from 4-week low at 93.65 low on Wednesday has been capped at 95.50 resistance on early European session, and the pair eased to levels around 94.20.

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