Session recap: Short covering in the greenback

FXStreet (Guatemala) - At the end of the week, the US dollar has claimed back some ground with shorts covering their positions into the closing day. We will now await to see how we open next week ahead of a busy schedule with a number of key data releases.

Today, EUR/USD is still claiming higher ground and was attempting the upside and recent highs, but a break of 1.39 on three attempts was the catalyst for a convincing rejection to the closing levels on 1.3880.

The dollar got a lift from a number of half decent data releases in PPI and the Reuters/Michigan Consumer Sentiment Index.

GBP/USD consolidated at the top of its run before drifting back from 1.6750 territory and into the closing numbers on 1.6730. Markets were keenly looking ahead to next week’s UK data releases which are sure to be the focus for cable in respect of the BoE’s inflation outlook.

USD/JPY and USD/CHF ended up being the best performers on the weak against the US dollar.

Key headlines

US PPI up and beating expectations

Reuters / University of Michigan consumer sentiment index beats expectations

Kuroda said BOJ ready to act if inflation goal comes under threat