Session Recap: GBP and USD rise on economic data

By FXstreet.com | August 05, 2014 AAA

FXStreet (Córdoba) - The Pound the US dollar rose on Tuesday supported by economic data from the UK and the US respectiv. Commodity currencies tumbled amid risk aversion while the Euro fell to fresh 2014 lows versus Greenback.

The EUR/USD failed to hold above 1.3405 (Monday’s low) and tumbled to 1.3356, then bounced slightly and finished the day at 1.3375, the lowest daily close since November 2013.

Among European currencies the Pound was the best and soared across the board after the Services PMI from July showed better-than-expected numbers in the UK. The GBP/USD ended the day near the highs above 1.6880, rising for the second day in a row, first time to do so in a month, extending the recovery from 1.6800.

The Yen ended mostly higher in the market, after rising on American hours. The USD/JPY peaked at 102.91 but then as US government bond yields declined and amid some risk aversion pulled back toward 102.45, ending flat hovering around 102.55/60.

Commodity currencies tumbled, with the NZD/USD hitting at 0.8450 fresh monthly lows, ahead of the NZ employment report. The USD/CAD posted the highest close in three months above 1.0950 while the AUD/USD managed to end around 0.9300.

Main headlines in the American session
Stocks decline hard; triple digit drop for the Dow

Gold holds above $1,280/oz

USD/JPY advances are short lived again

GBP/USD's bounce at 1.6850 finds resistance at 1.6880

EUR/USD consolidating the drop on 1.3356 low

NZD/USD drops to 0.8450, 8-week low

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