Monday, June 14, 2010

European markets extend rally as investor's sentiment improves; Euro and Pound pointing up

European markets have opened the week on a bid tone, extending the positive trend seen at the end of last week, following gains on Wall Street and Asian markets. On FX markets, Euro and Pound are trading higher against Dollar and Yen.

Eurostoxx 50 Index advances 1.20% while German DAX Index rallies 1.3% and the French CAC Index adds 1.4% on the first two hours of trading. In the UK, the FTSE Index adds 0.65%.

Shares of basic resources and insurance companies are leading gains in Europe on Monday, with investor's optimism at higher levels as concerns about the sovereign debt ebbed, at least momentarily, and in absence of key macroeconomic data in the region.

On the negative side, BP shares are trading 2.7% lower on the FTSE 100, with the company's Chairman facing a crucial meeting with Barack Obama later this week, to address issues related with the oil spill in the Gulf of Mexico.

Euro and Pond higher on demand for risk

EUR/USD continues trading higher as investors' confidence picks up, and rebound from 1.1875 low on Jun 7 has extended above 1.2150, acting as support now and the pair trades at session highs testing resistance at 1.2230 at the moment of writing.

GBP/USD retreat from 1.4760 found support at 1.4505 low and the pair 's rebound has accelerated on European session with the pair extending above 1.4700 to reach session high at 1.4725 so far, with Friday's high, at short distance.

USD/JPY remains trading on a slightly upward trend from 90.85 low last week which extended so far to resistance area at 92.10, which is being tested at the moment.

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