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Session recap: Dollar down amid weaker US data; EUR/USD trades above 1.2700

FXStreet (San Francisco) - The Dollar traded under pressure on Monday as investors sold the greenback amid weaker than expected PMI services and housing data. EUR/USD climbed above the 1.2700 level at 1.2720 before closing at 1.2700.

Stocks closed mixed while the oil declined below the $80.00 again amid Goldman Sachs forecast's cut in oil prices. Gold collapsed later on the day as it tested the $1,225.00 level. All of this stuff ahead of Wednesday's FOMC meeting.

The EUR/USD advanced for second day as the pair is extending bounce from October 23's low at 1.2610. Currently, EUR/USD is closing at 1.2698, up 0.22% on the day, having posted a daily high at 1.2724 and low at 1.2666.

Valeria Bednarik from FXStreet pointed out that "despite a weak greenback, majors had remained within familiar ranges, as investors are wary to move them to far away in light of upcoming FED meeting next Wednesday."

Bednarik affirmed that "a break above 1.2720 should lead to a quick test of 1.2750 price zone, while once above this last, the 1.2780/90 strong Fibonacci area comes next."

The GBP/USD recovered the 1.6100 level after two days of gains and 150-pip upside movement from October 23's low of 1.5990. GBP/USD is up 0.19% on the day at 1.6120 after peaking at 1.6150. The USD/JPY lost the 108.00 figure as the pair declined for second day. USD/JPY is closing below 108.00 at 107.79, 0.34% on the day.

Main headlines in the American session

Goldman Sachs slashes oil price forecasts as hedgies jump in too quick at the bottom

United States Markit Services PMI below forecasts (58) in October: Actual (57.3)

United States Pending Home Sales (MoM) below forecasts (0.5%) in September: Actual (0.3%)

US: Annual Pending Home Sales rise by 1% in September

All about the Fed; Wall Street closes mixed

South Korea Consumer Sentiment Index dipped from previous 107 to 105 in October

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