Tuesday, 30 June 2009

Mixed European Markets, GBP under pressure on UK GDP collapse

FXstreet.com (Barcelona) - European markets have turned mixed after opening higher in today's session as GDP collapse could ease the previous confidence on economic recovery. Oil and commodities are rising so far today, UK GDP has posted the biggest drop since 1958, a worse data than expected which has pushed the Sterling under pressure.

Eurostoxx 50 is posting 0.16% gains, DAX Xetra rises 0.10%, IBEX 35 is 0.20% higher and CAC 40 advances 0.09% so far today, on the other hand, AEX declines 0.28% today. Oil barrel is rising 1.00% to climb above $72.00, Gold is trading around 941.50.

United Kingdom has posted the biggest contraction since 1958, fueled by industries from construction to services. UK GDP has decreased 2.4% QoQ in the 1Q, worse than 2.1% drop market expectations and well below of 1.9% declines posted in the previous quarter. UK GDP has fallen 4.9% YoY in the first quarter, worse than 4.3% drop expected and 4.1% declines posted in the last quarter of 2008.

Eurozone has posted the first negative reading in its preliminary CPI, with a 0.1% decline in June.

GBP/USD has lost almost all of its initial gains and it is trading around 1.6600/10, 0.20% above today's opening price. GBP/JPY has fallen to 158.50 after rejecting from 160.30, currently the pair is trading around 159.10/20, 0.15% below today's opening price.

EUR/USD has rebounded at 1.4080 and currently the pair is trading around 1.413040, 0.25% above today's opening price.

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