European markets Trading Floor update

European markets were trading cautiously this morning. The FTSE and DAX opened up 0.2% while the CAC and Euro Stoxx were up by 0.1%.

The FTSE was topped by Kingfisher and Randgold Resources, while Burberry and Vedanta Resources recorded losses. Citigroup reported positive net income figures for the three months to the end of June.

Looking at the foreign exchange market, the euro and Australian dollar appreciated against the US dollar ahead of Bernanke's Testimony taking place on Wednesday. The rates were 0.9177 for AUD/USD and 1.3069 for EUR/USD. GBP/USD, on the other hand, was trading slightly lower at 1.5090 this morning.

Dollar rebounds as Yen weakens

Reuters reported the dollar was up 0.9 percent at 100.38 yen, recovering after a survey on Monday showed U.S. factory activity fell in May to its lowest since June 2009 sent the U.S. currency tumbling to a four-week low of 98.86 yen.

The ISM survey dimmed prospects of the Fed scaling back monetary easing soon, even though two Fed policymakers said on Monday the central bank could taper its stimulus in the coming months if data improved.

With the Fed pledging to maintain stimulus until the labor market improves, jobs numbers due on Friday will be under intense scrutiny.

Japan's pension fund helped the dollar against the yen but more positive dollar news would be needed to push it significantly higher.

The euro was steady at $1.3075, off a peak of $1.3108 reached on Monday, its highest since May 9. Resistance was seen at $1.3141, the 76.4 percent retracement of its May 1-17 fall.

The Australian dollar was down 1 percent at $0.9675 after the Reserve Bank of Australia held rates at 2.75 percent and governor Glenn Stevens said easing was still on the table.

Source: Reuters