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Forex pairs in this Article » EUR/USD, GBP/USD, USD/JPY (San Francisco) - Once upon a time, there was a market that was concerned on QE tales, weak economic recoveries and an Euro and Yen too expensive besides an Aussie too weak. Stocks were depressed and everybody was calling for a long term turn-back. But suddenly everything changed. A couple of PMI releases around the world came above expectations and data pointed to global growth.

Overall, market sentiment improved as China manufacturing PMI returned to the expansionary territory. The German index also rose above expectations and the manufacturing sector in the US remained in the growth field. Nasdaq Composite was halted by 3 hours on technical problems.

However, in terms of the stocks gains, short covering was the note as Kenny Polcari from CNBC said in a recent Tweet: "Shorts running for cover, forcing market higher. There is NO change in overall sentiment," Polcari affirmed. He concluded pointing the "we are halting right at resistance."

Remaining on intermarket and affirming overall sentiment, the 10-year yields weren't able to break 124.00 support after testing it several time in the last two days. The Gold traded inside the last week range around 1,374.50. The XAU/USD rose 0.32% on the day.

On currencies, the US Dollar Index rallied to the 82.00 area but the pair was rejected at this level and now it is trading at 81.48, 0.31% positive on the day. The EUR/USD declined to test the 1.3300 area, but the pair bounced to trade again at 1.3360. The GBP/USD accelerated its decline with the Cable pricing at 1.5560, not the pair is at 1.5595.

The USD/JPY jumped to 2-week highs around 98.80, 100 DMA. "The hourly chart shows 100 and 200 SMA converging around 97.70, offering strong support in case of a sudden slide, while indicators aim lower in positive territory, suggesting some bearish corrections ahead," comments Valeria Bednarik, Chief Analysit. "However, shy buyers are surging around 98.40 so a strong price acceleration below the level is required to confirm a return of the bears."

The USD/CAD rose for fifth day in a row to break above the 1.0500 area and closing near to 1-month highs at 1.0530. The AUD/USD performed its first positive day in the last fourth sessions. The AUD/USD recovered from 0.8930, 2-week low, to price at 0.9040. Now the pair is moving around 0.9005.

Main headlines in the American Session:

US: Initial Jobless Claims rose to 336K

Canada: Retail Sales fell 0.6% MoM in June

US: Markit Manufacturing PMI rose to 53.9 in August

US June house price index +0.7% vs 0.6% expected

German finance minister rules out another Greek debt cut

US: CB leading index rises 0.6% in July

NASDAQ trading suspended Thursday

Wall Street closes with gains after Nasdaq 'issue'
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