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Session recap: Dollar’s driving and GBP is shotgun

FXStreet (Guatemala) - The US dollar has maintain the top spot in the FX Space with Sterling somewhere in it’s shadows leaving the rest of the G10’s trailing behind like cans tied to the string of the wedding car of a happy couple that just got married.

Markets are so far ignoring the fact that the Fed might start to get concerned over the strength of the dollar domestically and need to keep rates lower for longer, but for now we are allowing the greenback to enjoy the top spot for a consecutive 11th week.

The GDP release from the US were in line with expectations backing up Yellen’s foresight although yields didn’t move higher until later on in the session while some were hoping for a rise closer to 5%.

EUR/USD couldn’t find any bounce and is finishing up 1.2680 at the time of writing and not too shy of 16 month lows while the divergence between the central banks remain significant.

USD/JPY’s range remained on the 109 handle between 109.03-109.50 while traders were reluctant to get ahead of themselves into the close and with sell orders from Japanese exporters resistant we ended 109.28.

GBP/USD has quite frankly been struggling for direction, caught up in a stronger greenback and in such an environment will struggle to move higher while it remains the second favourite to the US dollar. Worth of note, the UK parliament voted to authorise airstrikes against ISIS in Iraq. “The 524-43 vote came after Prime Minister David Cameron told Parliament that the country had a "duty to take part" in international efforts to combat the extremist group” – CNN.

AUD and NZD were both punished to new lows but some squaring up ahead of the weekend were the ultimate game.

Key events:

US Q2 GDP was revised to 4.6% and in line with expectations

University of Michigan consumer sentiment index 84.6 Final in September versus 84.7 forecast

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