FXstreet.com (Barcelona) - U.S stock markets have opened Friday's session posting moderate losses although they are recovering somewhat, while U.S. CPI reading, was good enough to erase fears of deflation. Euro and Pound have dropped ahead of the Wall Street opening, although yet above support levels, while USD/JPY continues trading sideways.

U.S stocks continued declining at Fridays opening after Thursday's decline,, with the Dow Jones losing 1.7% minutes after the bell. Nevertheless fears of deflation for U.S. economy have faded, with CPI growing 0.3% month and month in January.

EUR/USD fell about 90 pips from 1.2647 to 1.2597 in early U.S. session although it has recovered to levels below resistance area at 1.2640/50, the Euro has been trading in the range between 1.2650 and 1.2565 for most of the day.

GBP/USD followed a similar pattern dropping to 1.4373 to some pips above support level at 1.4225, to pull up afterwards past 1.4320 on its way to today's high at 1.4373. USD/JPY continues consolidating between 94.00 and 94.50.