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FX : European markets advance as U.S. data spreads optimism; Euro and Yen rally further
 
FXstreet.com (Barcelona) - European markets have opened with gains above 1.0% on investors' optimism after U.S. data on Tuesday and Bernanke's words affirming that the world's main economy is about to return to grow after a deep recession. The Euro has printed fresh 2009 highs while Dollar weakness continues.

Eurostoxx 50 Index trades 1.0% up, while German DAX Index rises 0.85% and the French CAC Index advances 1.1%. In the UK, the FTSE Index trades 1.08% up in the first hours of trading.

In the macroeconomic domain UK claimant count rate rose to 5.0%, the largest level since 1997, due to a 24,400 increase in August, while the ILO unemployment rate rose o,% to 7.9% in the three months to July. Furthermore, Euro Zone CPI rose 0.3% in August, 0.2% down year on year, as expected.

Euro and Yen continue rallying

EUR/USD bounce at 1.4560 low on Tuesday has extended during Asian session, and on the back of a strong opening on Euro Zone stock markets, the Euro has broken above 1.4700 for the first time since mid-December, to reach 1.4715 high, with Dec 13 high at 1.4720 on sight.

USD/JPY retreat from Tuesday's high at 91.65 has accelerated during European session, as the Dollar dropped from levels right above 91.00 to break 7-month low at 90.20 and hit a fresh low a 90.15.

GBP/USD is recovering during European session and, after having bounced art 1.6430 low, the pair reaches levels right above 1.6500 on its way to test 1.6515 Asian session high.
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