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Session Recap: Consolidation day amid central bankers' singing

FXStreet (San Francisco) - The USD remains trading firm in the Currency market but Monday wasn't that wild day as majors moved mostly in consolidation mode. Investors were paying attention to Mario Draghi's dovish comments on the Eurozone's economic recovery as well as Fed's Dudley that shows that he is discomfort with interest rates at zero.

ECB's president Mario Draghi commented that the Eurozone's recovery has lost momentum in the recent months; Euro's decline was limited perhaps as the market was pricing in it amid recent ECB steps and signals on stimulus measures.

On the other side, NY Fed's Dudley affirmed that the Federal Reserve wants to get off zero lower bound as soon as appropriate. Dudley also commented that the US Dollar value is not a goal but it could affect monetary policy.

Inside this framework, the EUR/USD declined to fresh lows of 1.2815 but the pair manages to recover ground to 1.2865. Pair closed at 1.2850. "Further slides are expected below 1.2810, will main bearish target set as on previous updates at 1.2740," pointed out FXStreet's analyst Valeria Bednarik.

The USD/JPY performed its first negative day in the last four sessions as the pair declined to 108.65. Currently, USD/JPY is trading at 108.79, down 0.22% on the day, having posted a daily high at 109.21 and low at 108.65.

Main headlines in the American session

Chicago Fed National Activity Index August -0.21 vs +0.33 exp

ECB's Draghi: Governing Council ready to use additional policy tools

Fed's Dudley: US economy needs to strengthen further before rates are moved

US stocks fell amid China worries

EUR/USD rises to 1.2850

The euro recovered ground during the American session against Greenback and erased losses. EUR/USD is trading around 1.2850, 20 pips above Friday’s closing price.
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