Session Recap: Dollar advances; GBP collapses

By FXstreet.com | Updated August 13, 2014 AAA

FXStreet (San Francisco) - The US Dollar posted advances against its major competitors on Wednesday despite a weaker than expected US retail sales data that pushed the Greenback under pressure. However, USD losses were short-lived and overall it performed gains.

The EUR/USD declined for third day. Currently, the pair is trading at 1.3363, down 0.04% on the day, having posted a daily high at 1.3416 and low at 1.3342. "Technically, the strong intraday advance has barely affected the wider picture, as price stalled below 1.3430/40 area, level that capped the upside for almost 3 weeks already," comments Valeria Bednarik from FXStreet.

The GBP was another story as the sterling traded under pressure following divish Carney comments on the inflation report. BoE's governor cooled possibilities for a rate hike in 2014. Market are now speculating for a hike in February 2015.

The GBP/USD broke below the 1.6700 key level and now it's closing at 1.6689, down 0.73% on the day, having posted a daily high at 1.6846 and low at 1.6685.

"The BOE's dovish inflation report was the major story of the day for the pound which slipped as low as 1.6686, the 38.2% retracement of the 1.5855/1.7190 which unfolded from November 2013 to July of 2014," pointed out Jamie Coleman from FXBeat.

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