Session Recap: Euro and Pound consolidate gains, the USD amidst smoke

FXstreet.com (San Francisco) - Thursday was a quiet day in the currency market as the risk sentiment took a pause after the recent movements. The Euro and the Pound were retaining high levels while the US Dollar traded on the defensive amid mixed economic signals.

The US Department of Labor published the lowest Jobless claims in 6 years but the government officials reacted quickly saying that it wasn't accurate as two states didn’t report. The Dollar reacted higher but after the numbers disapproval, it returned to previous prices.

The EUR/USD hold levels above the 1.3300 area where the pair is closing the day. Same story in the GBP/USD as the Pound kept the 1.5800 against the Dollar. The USD/JPY extended losses on Thursday with the pair testing the 99.00 and finishing the day at 99.50.

However, the story was kind of different in the gold. The XAU/USD collapsed $135, 3.16% in the day to break the 1,355 key area. The gold is closing the day at 1,322.

Main headlines in the American session:

US: Initial Jobless Claims fell to 292K

US: Import Price Index flat in August

Canada: New Housing Price index up 0.2% MoM in July

Draghi warns on short-term money market rates

Assad says Syria will not fulfill chemical weapons initiative unless Washington stops threatening strike

It’s all losses for metals as risk appetite stays high

Wall Street declines after rallying three days

NZD/USD testing support at 0.8140

NZD/USD has climbed 80 pips since the hawkish tone that came from the RBNZ yesterday, and was eventually capped at 0.8160.
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Gold extends further losses; 9 week lows

Gold futures dropped in the largest decline in prices for nine weeks. Gold fell on the back of a U.S. jobless claims count that last week dropped to the lowest since April 2006. This gave rise to speculators forecasting that the Federal Reserve will indeed look to cut back on the fiscal stimulus in the near future
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