Session Recap: USD weakens across the board

FXstreet.com (Córdoba) - The USD extended its decline during the American session falling to multi-week lows versus most competitors as FX investors seem to have already priced-in September Fed taper.

EUR/USD rose to 1.3342 during the afternoon trade, but was capped by the 61.8% retracement of the broader 1.3710/1.2746 fall, and pulled back slightly. GBP/USD rallied toward a 7-week high of 1.5530, propelled by the BoE Inflation Report and the provided forward guidance.

Meanwhile, USD/JPY extended losses into a fourth day and hit a 7-week low of 96.32, while USD/CHF bottomed out at 0.9206. The USD however, managed to accomplish mild gains versus the CAD, while it remained little changed against the AUD.

US stocks fell for third consecutive day weighed by uncertainty about the timing of cuts in the Federal Reserve’s $85 billion in monthly bond purchases.

Main Headlines in America:

US equities fall for third day this week

Merkel to step down before end of term if re-elected - Stern

Canada: Ivey PMI falls into contraction in July

Portugal's treasury secretary resigns

Precious metals consolidating, gold still held below 1300.00

Fitch affirms Germany at AAA, outlook stable

Markets retreat on ‘taper’ jitters, dollar tumbles