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Session Recap: Majors take a break but the pound doesn't

FXStreet (San Francisco) - The Dollar traded mostly sideways against the Euro and the Japanese Yen; however, the pound is trading quite depressed after the inflation report from th Bank of England earlier this week and so GBP/USD extended its decline to the 1.5700 area.

The Oil collapsed further to close below the 75.00 level at 74.35; the gold continues trading sideways below the 200-hour MA at 1,166.50. The US stocks market closed with small gains boosted by strong corporate data from Wal-Mart.

On currencies, the GBP/USD declined for second day after breaking below the 1.5750 and closing at 1.5705. "The main story in the FX was the continued bleed lower in cable," ForexLive's Adam Buttom comments. "There was no particular driver today but short-covering in EUR/GBP shorts was a part of the equation. Selling accelerated in cable as London began to sign off and a little squeeze hit below 1.5700 to 1.5994."

The EUR/USD rose but the movements were contained by the previous days range below 1.2500. The pair is currently testing this level after its third flag. If the pair breaks above 1.25 it may be a be a turning point in the short term.

"In the 4 hours chart a mild positive tone comes from technical readings albeit showing no momentum," FXStreet chief analyst Valeria Bednarik says. "Only above 1.2520 the pair may gain it, and attempt a run higher in the last day of the week."

Main headlines in the American session

US initial jobless claims rise to 290k

Canada New Housing Price Index (MoM) below forecasts (0.2%) in September: Actual (0.1%)

September 2014 US JOLTS report 4735k vs 4800k exp

US EIA crude oil inventories -1735K vs +680K expected

Wall Street ends with small gains; record close for the Dow

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Valeria Bednarik, chief analyst at FXStreet explained that a slowly but steadily cable tumbled down to 1.5693.
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