Session Recap: Risk aversion hits the Euro and fuels the Dollar

FXstreet.com (San Francisco) - The Euro get hurt in the last trading day of the month as concern about an imminent US attack to Syria hit investors’ confidence. The EUR/USD declined for third day and extended losses to 1.3170, however the pair managed to recover ground and it finished the day at 1.3220.

On the week, the EUR/USD lost around 150 pips from 1.3375 opening price. Finally, the Euro logged its first negative month in the last three against the US Dollar. The GBP/USD closed negative for fourth day. This time declining to 1.5460 and closing the week at 1.5495. It was its second negative week in row but its third positive month.

The USD/JPY remains in its short term range and it closed at 98.10. The USD/CAD tested levels above 1.0550 but it closed negative at 1.0530. The AUD/USD logged its fisth negative day at 0.8900.

The Gold retraced again on Friday with the XAU/USD falling to 1,394. The Oil extended its 2-day drop from the 112.00 area and it closed at 107.60.

Main headlines in the American session:

Canada: GDP contracted 0.5% MoM in June

US: PCE rose 1.4% YoY in July

US August Chicago PMI rises to 53 vs 52.3 in July

US Reuters/Michigan Consumer Sentiment Index: 82.1

Goldman Sachs lowers Q3 GDP estimate

The 1,001+ Syrian deaths that make the world shiver

CFTC Commitments of Traders: Big bets on gold and big bets against CAD

Wall Street closes down on Friday; monthly declines

Flash: Summer lull ends as event risks build for next week – BMO Capital Markets

The week starts off with end-of-summer holidays in the US and Canada on Monday – from there on, it should be an exceptionally active week in FX markets with all of the normal 1st-week-of-the-month data releases plus a host of central bank decisions, notes Greg Anderson at BMO Capital Markets.
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