Session Recap: GBP and JPY show strength on another low volatility day

FXStreet (Córdoba) - Majors moved in small ranges during an American session characterized by low volatility. The Pound and the Yen were the best performers of the day while commodity currencies suffered from risk aversion. The US dollar finished mixed ahead of the release of FOMC minutes.

Two Fed officials spoke on Tuesday giving different signals about monetary policy. While Plosser warned that the FED may need to raise rates sooner rather than later; Dudley affirmed that a relative slow pace of tightening should be expected. The US dollar remained mostly unchanged amid comments but tomorrow's volatility could rise with FOMC minutes.

In the forex market, the Yen benefited from risk aversion. Wall Street finished lower and US Treasury yields rose. The USD/JPY fell again but managed to hold above yesterday’s lows and closed around 101.30.

The Aussie was among the worst performers pushing the AUD/USD to finish around 0.9245,the lowest daily close since April 7. The NZD/USD fell and closed below 0.8600.

The Pound consolidated gains during the American session and was the best performer among European currencies. The GBP/USD moved in a small range during Wall Street above 1.6830 while EUR/USD traded between 25 pips and finished around 1.3700.


Main headlines in the American session

Wall Street declines amid rate hike worries

">FXBeat US wrap: Mild risk off; EUR/JPY bounces near 138.50

USD/JPY testing 200 DMA – RBS

Gold erases losses, consolidates around $1,295


GBP/USD strong but technicals are mixed

AUD/USD heavily offered clearing way for lower


Plosser round three: Fed rate hike tied to economy, not calendar


NZD/USD extends decline below 0.8600