Session Recap: The USD declines on risk appetite

FXstreet.com (San Francisco) - The Greenback traded lower on Thursday, the day after Bernanke. With a new wave of risk appetite following the chairman words and the ongoing QE hopes, the EUR/USD rose to test the 1.3200 area and it closed the day around 1.3100.

The GBP/USD rallied around 200 pips on the day from the 1.5000 area to test the 1.5200 level and it finished the day just below it. The USD/JPY extended declines from the 99.00 level and tested the 98.25 as July low. Currently the pair is trading at 99.00.

Main headlines in the American session:

US: Initial Jobless Claims rose to 360K

US: Import Price Index rose 0.2% YoY in June

Canada: New Housing Price index up 0.1% MoM in May

Gold producing fireworks today

Commodities Brief – Precious metals attempt to hold onto overnight gains

US federal budget surplus exceeds expectations

Portugal requests delay in Troika bailout review due to political situation

Wall Street rallies on Thursday by the hand of Bernanke

AUD/USD below 0.9200 again

The AUD/USD foreign exchange rate is last quoted at 0.9185, off recent NY session lows at 0.9119, printed on the back of USD strength and worse than expected US jobless claims.
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Flash: Reserve diversification, USD remains king - SocGen

Reserve diversification out of the USD should slow or stop for a while in emerging markets reserves, notes Sebastien Galy, Currency Strategist at Societe Generale, who adds "not only due to a deep focus on risk management, but also the lack of better opportunities than the USD."
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