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1 Jul 2014
Session Recap: Dollar hammered; the Sterling flies
FXStreet (San Francisco) - The US Dollar was the loser of the day as it declined against its major competitors amid fund managers rebalancing. On the other hand, the Sterling was the winner not only in the day but in the quarter with the cable flying to multi-year highs.
The GBP/USD broke above the 1.7000 area to trade at highs since October 2008 at 1.7115. "There’s no doubt now that cable has broken out," comments Adam Button from ForexLive. "Talk of BOE asset sales and Goldman Sachs moving up their forecast for BOE rate hikes were catalysts but the real story was US dollar weakness."
The Greenback was sold aggressively on Monday as fund managers were trading on end-month rebalancing mode on a huge demand of Euro as well as GBP and JPY. The EUR/USD rose to test the 1.3700 area ahead of ECB and NFP. Currently, EUR/USD is trading at 1.3692, up 0.32% on the day, having posted a daily high at 1.3699 and low at 1.3640.
The USD/JPY declined for 4th straight day to price at 101.25. Currently, USD/JPY is trading at 101.32, down 0.00% on the day, having posted a daily high at 101.34 and low at 101.32.
Main headlines in the American session
Canadian April GDP +0.1% vs +0.2% m/m expected
United States Chicago Purchasing Managers' Index below expectations (63) in June: Actual (62.6)
United States Pending Home Sales (MoM) came in at 6.1%, above expectations (1.5%) in May
United States Dallas Fed Manufacturing Business Index increased to 11.4 in June from previous 8
Williams says Fed won’t raise rates ‘for some time’
Gold climbs to 11-week highs, eyes $1,330
Everything went up in the quarter but the EUR/USD
The GBP/USD broke above the 1.7000 area to trade at highs since October 2008 at 1.7115. "There’s no doubt now that cable has broken out," comments Adam Button from ForexLive. "Talk of BOE asset sales and Goldman Sachs moving up their forecast for BOE rate hikes were catalysts but the real story was US dollar weakness."
The Greenback was sold aggressively on Monday as fund managers were trading on end-month rebalancing mode on a huge demand of Euro as well as GBP and JPY. The EUR/USD rose to test the 1.3700 area ahead of ECB and NFP. Currently, EUR/USD is trading at 1.3692, up 0.32% on the day, having posted a daily high at 1.3699 and low at 1.3640.
The USD/JPY declined for 4th straight day to price at 101.25. Currently, USD/JPY is trading at 101.32, down 0.00% on the day, having posted a daily high at 101.34 and low at 101.32.
Main headlines in the American session
Canadian April GDP +0.1% vs +0.2% m/m expected
United States Chicago Purchasing Managers' Index below expectations (63) in June: Actual (62.6)
United States Pending Home Sales (MoM) came in at 6.1%, above expectations (1.5%) in May
United States Dallas Fed Manufacturing Business Index increased to 11.4 in June from previous 8
Williams says Fed won’t raise rates ‘for some time’
Gold climbs to 11-week highs, eyes $1,330
Everything went up in the quarter but the EUR/USD