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US session recap: Dollar under performs end of week

FXStreet (Guatemala) - It has been a good week in the FX space with wide ranges offering opportunity. The market has been highly sensitive to Central Bank chatter, surprises in such risks as the UK’s inflation report, the ECB and BoJ’s stance on matters relating to recent initiatives in policy and investors are extremely active towards the end of the year.

Today, the greenback was hit hard and currencies vs the US dollar have broken through recent ranges in some cases. The EUR/USD has ended the week on the bid and back onto the 1.25 handle. 1.2550 was the target and the euro initially rallied on the back of the European sessions decent GDP numbers for France and Greece, coming out of recession, and in-line numbers from Germany and Italy.

GBP/USD took out the 2009-2014 fib retracement of 1.5785 and sellers await for opportunities to get on board a flight for 1.5500. The pair managed a rally on the 1.56 handle, meeting supply at 1.5695 and consolidated into 1.5670 to end the week in a relative fraction off from the lows.

USD/JPY pulled back from the yearly highs but remained on the 116 handle to close the week in positive territory. 116.82 the high dropped away and prices tested 116.00 before settling on in the bid and through 116.20 resistance.

AUD/USD was up through the 0.87 handle and testing the mid point of the price and closes in positive territory at this resistance level. The price here is key for the pair with a positive close as we await next weeks FOMC minutes that could decide the direction into the year end for the pair.

Key events:

United States Reuters/Michigan Consumer Sentiment above expectations

US retail sales beat expectations

Colombia Industrial ouput (YoY): 1.3 (September) vs 0.3

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