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Session Recap: King Dollar but not that much

FXStreet (San Francisco) - The US Dollar traded higher on Thursday versus Euro and Pound but it declined against the Japanese Yen. Mario Draghi downplayed the Euro but a US yields drop contained the movement.

"Draghi spelled out in stunning detail his case for a lower euro FX rate," pointed out Jamie Coleman from FXBeat. "Unfortunately for euro bears, US yields fell to their lowest levels in over a year, to 2.415%, stalling the dollar rally in its tracks."

The Euro declined for third day in the last 4 as pair closed down 0.15% at 1.3362, having posted a daily high at 1.3394 and low at 1.3337. The hourly FXStreet OB/OS Index is showing neutral conditions, alongside the FXStreet Trend Index which is slightly bearish.

"The EUR/USD flirted with this year low before bouncing, contained inside a daily descendant channel coming from 1.3627, July 14th daily high, with the roof of the figure converging with 100 SMA in the hourly chart around 1.3390 and immediate resistance," affirms Valeria Bednarik.

The Sterling declined for second day versus the Dollar as the pair extended losses below the 1.6850 level and to close at 1.6830.

Currently, USD/JPY is closing at 102.06, down 0.03% on the day, having posted a daily high at 102.48 and low at 101.99. The FXStreet OB/OS Index is reflecting oversold hourly conditions, while the FXStreet Trend Index is slightly bearish.

Main headlines in the American session

Canada Building Permits (MoM) came in at 13.5%, above forecasts (-2%) in June

US initial jobless claims 289K vs 304K expected

ECB's Draghi: TLTROs to enhance accommodative stance, work on ABS purchases intensify

Canada Ivey Purchasing Managers Index up to 50.4 in July from previous 49.7

US stocks closed lower amid Russia conflict

US stocks closed lower amid Russia conflict

Wall Street finished Thursday with declines as investors' confidence was hurt by the Ukraine/Russian conflict and despite upbeat earnings and better than expected jobless claim report.
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Annette Beacher, FX Strategist at TDS, notes that the poor jobs report out of Australia on Thursday, has sparked fresh speculation of another rate cut from the RBA in due course.
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