Session Recap: USD backs away from multi-month highs

By FXstreet.com | Updated August 27, 2014 AAA

FXStreet (Córdoba) - With no clear drivers during the European session, the USD weakened somewhat and pulled back from multi-month highs versus the euro and the yen, while commodity currencies continued to outperform.

The EUR/USD rebounded from a fresh almost 1-year low of 1.3152 and reached the 1.3180 zone, while the GBP/USD also recovered but stays below 1.6600. The USD/JPY consolidates just below the 104.00 mark.

As for commodity currencies, the USD/CAD has dropped more than a full cent after being rejected by the 1.1000 area the previous day. The NZD/USD recovered from a 6-month low and climbed to a high of 0.8378 while the AUD/USD remains firm near 0.9350, with buyers appearing in every dip to 0.9300.

"Despite the minor dollar setback today, the uptrend remains intact", says the BBH analyst team. "There still is a strong bias toward buying dollar dips".

European stocks were little changed after a sharp 2-day rally and following a record close above 2000 in the S&P 500 yesterday.

There is no first-tier data scheduled for the Eurozone or the US until tomorrow.

Main Headlines in Europe:

Germany Gfk Consumer Confidence Survey came in at 8.6 below forecasts (9) in September

EUR/USD on its way to 1.3000? – Commerzbank

Italy Consumer Confidence below forecasts (104) in August: Actual (101.9)

European stocks little changed after steep gains

Month-end flows behind USD sales

IMF’s Lagarde under formal investigation for negligence in French political fraud case

Risk-on sentiment pushes higher – Danske Bank

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