Session Recap: USD weakness was the theme

By FXstreet.com | Updated July 30, 2014 AAA

FXStreet (Córdoba) - The US dollar extended losses while European stocks advanced Thursday after the Fed dovish-ish stance spurred speculations the central bank is not ready to start hiking rates soon.

The EUR/USD broke above 1.3600 and reached a 10-day high of 1.3642 before easing slightly. The GBP/USD reached a fresh 5-year high of 1.7027 despite mixed UK retail sales data, while USD/JPY retested the 101.70 support area.

The AUD and the CAD were also higher versus the dollar as well as gold and oil. European stocks extended gains into a third day while US futures point for a positive opening.

"The main take away from the FOMC meeting is that the Federal Reserve is not the Bank of England. Hawkish comments by top BOE officials--not just Governor Carney--are encouraging investors to bring forward the beginning of a normalization of monetary policy and a tightening cycle, no matter how gradual", said the BBH team. "In contrast, the Federal Reserve stuck to its course, despite the recent pick-up in inflation and the improvement in the labor market".

During the New York session watch for jobless claims and Philadelphia`s manufacturing survey.

Main Headlines in Europe:

What’s the sentiment around the EUR/USD today? – Commerzbank and OCBC Bank

SNB keeps franc cap at 1.20 per euro

SNB's Jordan: Ready to act on ECB rate cut impact

UK: Retail Sales drop 0.5% in May, as expected

European stocks extend gains after Fed

You May Also Like

Related Forex Analysis
  1. Forex News

    Euro Flounders at Yearly Lows as Likelihood of ECB QE Increases

  2. Forex News

    Weekly Trading Forecast: How Far can the Dollar Go in 2014?

  3. Forex News

    Japanese Yen May Resume Recovery on Year-End Capital Flows

  4. Forex News

    GBP/USD Range in Focus Ahead of U.K. & U.S. 3Q GDP Reports

  5. Forex News

    US session recap: USD index and stocks rally for record highs

Trading Center