Session Recap: USD weakness was the theme

By FXstreet.com | June 19, 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

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