FXstreet.com (Barcelona) - European markets are going through losses on Friday as China's stimulus boost faded, the Euro and Pound are consolidating after respective upward reactions and the Yen continues crawling higher against the Dollar ahead of yet another huge decline in U.S. non-farm payrolls.

European Stock markets are posting losses from 0.26% in the Amsterdam AEX to 1.25% in the Eurostoxx 50, The upside effect of Chinese stimulus plan seems to vanished, and reality has slapped the markets with news of General Motor's troubles and increasing concern over the whole financial system which is punishing bank's stocks.

On the macroeconomic front, UK PPI has been better than expected although it has not had any impact on the Pound, furthermore, Today's U.S. non-farm payrolls points out to show that U.S. economy continues destroying labour at a fast pace.

Yen stronger, Euro and pound consolidate after rallies

USD/JPY has suffered an strong reversal on rejection from 99.50 and the pair has lost around 300 pips ever since dropping to a new intra-week low of 96.55; at the moment, the decline seems to have lost strength and the pair is trying to bounce from current levels in order to get back above 97.00 again. So far support level at 96.40 will remain intact.

EUR/USD rally from 1.2480 low has capped at 1.2727, the Euro has failed to remain above 1.2700, and rejection of that level has produced a setback towards previous intra-week high at 1.2660. At the moment the Euro seems to be consolidating above 1.2660.

GBPUSD rally from 1.4039 low on decline after BoE cut rates to 0.5% has halted ta a maximum 1.4288, to retrace towards 1.4200, The Pound advances higher at the moment towards 1.4250, in range ahead of Non Farm Payrolls report.