Risk aversion seems to have returned to European markets on concerns about automobile giants such as Chrysler and General Motors going bankrupt. Euro and Pound have risen slightly while the Dollar appreciated against the Yen during today’s European session. Eurostoxx 50 drops 1.53% at midday time in Europe while German DAX Index has dropped 1.22%, and French CAC fell 1.45%, on investor’ concern about the future of Chrysler and General Motors. Furthermore, macroeconomic data in the Eurozone has failed to brighten things up; EuroZone’s manufacturing sector’s activity continues well into contraction figures, and German consumption has weakened further in February. Euro and Pound edge up, Dollar up against Yen EUR/USD decline from yesterday’s high at 1.3343 seems to have set a strong enough support level at 1.3170, and the pair is about to explore higher levels, testing 1.3220/35 resistance level. The Pound has broken above 1.4375 resistance level and therefore, above the ranging trade of the last two days, approaching 1.4400 on its way to Mar 26 low at 1.4425. The USD/JPY has returned to levels above 99.00 resistance and rises below intra-day high at 99.50, trading above exponential moving averages in the hourly chart.

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