European markets advance ahead of interest rate decisions; Euro and Pound, flat

FXstreet.com (Barcelona) - European markets are going through gains on Thursday, ahead of monetary policy decisions by the BoE and the ECB, supported by a string of strong quarterly earnings reports. Euro and Pound continue consolidating at year highs.

Eurostoxx 50 Index advances 1.05%, while German DAX Index adds 0.83%, and the French CAC Index gains 0.98%. In the UK, the FTSE Index trades 1.13% up, in the first hours of trading.

The Bank of England will announce its monetary policy decision at 11:00 GMT, and , most likely will keep its benchmark rate at all time low 0.5% on hold. The ECB will also keep rates at the current 1.0% in order to entice credit flow while economy starts showing signs of slight recovery which could lead to growth in the second half of the year.

Euro an Pound in range at year highs

EUR/USD remains trading in a range around 1.4400 after Monday's rally from 1.4205. Today, the Euro has been floating from 1.4385 to 1.4430.

GBP/USD has eased to a flat channel from 1.6960 to 1.7030 after having hit a fresh 9-month high at 1.7045 yesterday.

USD/JPY bounce at 94.60 low yesterday has extended above 95.00 ahead of the European session opening, and the pair has reached 94.40/45 resistance area, which is being tested at the time of writing.