Tuesday, March 31, 2009

European stock markets open with gains; Euro and Pound continue recovery

European markets have opened Tuesday’s sessions with gains reversing partially declines posted on Monday; Euro and Pound remain trading higher after having bottomed yesterday.European markets are posting gains around 1.0% on Tuesday following news by Mark & Spencer, UK’s biggest retailer, obtaining better than expected results. Eurostoxx 50 adds 1.04% and German DAX Index is up 1.02%, with French CAC Index 1.12% up after 1 hour of trading.On the macroeconomic front German Unemployment has increased at a larger than expected extent in February.
German adjusted unemployment rate reached 8.1% in Feb from 8.0% in Jan.Euro and Pound at resistance levelsEuro and Pound are struggling with potential key levels at the minute. EUR/USD rally from 1.3110 low on Monday has reached resistance zone at 1.3275/85 level, which is being tested right now.GBP/USD has suffered a slight reversal at 1.4340; the level has been tested twice, and the Pound has been rejected so far. GBP/USD is trading above the 50 day SMA, although rally from 1.4110 low yesterday seems to be losing strength.USD/JPY rally from 95.95 low yesterday has reached 98.35/45 resistance level (Mar 29 High) although the Dollar has not been strong enough to break it yet.

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