FXstreet.com (Barcelona) - After having closes the best week of the year last week, risk appetite continues dominating European markets which are posting increases above 2% on Monday, with Euro and Pound returning to the highest levels since late February.

European markets have continued posting gains in Monday on recovered confidence on the Financial system, with banks shares leading the rally.

EUR/USD rally in Asian session has extended in the first hours of European trading, The Euro has reached past previous two weeks high at 1.2957, aiming to what seems to be an important resistance level at 1.2992 (Feb 23 high). The Euro has stepped back slightly although it remains above 1.2957 so far.

The Pound is showing strength at the week's opening, and rebound from 1.3888 intra-day low in Asian session extends above 1.4100 so far and advances on its way towards 1.4180 resistance level (Mar 9 high) which would pare losses of the previous week's decline.