European stocks weaken on increasing risk aversion; Dollar and Yen favoured

European markets are going through losses, following weak sessions in both U.S. and Asia, after the unexpected deterioration of U.S. consumer's confidence. Dollar and Yen strengthen on adverse economic outlook.

Eurostoxx 50 Inddex drops 1% while the German DAX Index declines 1.1% and the same negative percentage is seen in the French CAC Index. In the UK, the FTSE Index drops 1.17% in the first hours of trading.

Risk appetite seen during the last months has faded during the current week dampened by weak macroeconomic data, namely U.S. consumer confidence, which posted ion Tuesday its largest decline since last December.

Euro and Pound weaken

EUR/USD attempted to pick up from 1.4770 low on Tuesday, although the pair was capped at 1.4840 area on early European session, and the Euro turned down breaking below 1.4800 and approaching 1.4770support level at the moment of writing.

GBP/USD has broken below intra-day low at 1.6340, after a brief period of consolidation, and the pair has dipped to test 1.6310 support level, which , so far, remains intact.

USD/JPY retreat from 92.30 low has extended on Wednesday's European session to 91.00 area which is being tested at the moment, so far, the Dollar trades right at 91.00 after having hit 90.90 low.