FXstreet.cm (Barcelona) - European markets are going through moderate declines on Thursday after two days of strong advances as sovereign debt woes on the Euro Area remain looming. In FX markets, the Dollar has rallied pushing Euro and Pound to week lows. Eurostoxx 50 Index dips 0.25%, while the German DAX index sheds 0.2%, and the French CAC Index edges 0.1% down. In the UK, the FTSE 100 index trades practically flat two hours after the opening bell. In the macroeconomic front, UK government spending exceeded revenue by GBP4.3 billion in January, posting the first positive Public Sector net Borrowing since records are taken 1993, against market consensus of a surplus by about GBP2.8 billion. Euro and Pound tumble to week lows EUR/USD was capped yesterday at 1.3790, and the pair pulled down during US session on increased concerns about debt woes in the Euro area, dropping to levels below 1.3600, to hit 1.3540 session low on early European session reaching levels several pips shy of 8-month low at 1.3530 GBP/USD reversal from yesterday's high at 1.5815 has extended lower at European session opening with the pair breaking below 1.5600/10 week low to reach 1.5575 so far. USD/JPY rally from 89.70 low on Wednesday found resistance at 91.35 area ahead of the Asian session opening, and the pair has extended its pullback on early European opening session to 90.70 low.

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