The British Pound extended losses overnight after dovish comments from BoE member McCafferty. He said that he believes further easing is required and that the BoE can cut rates further towards 0 % and increase its QE programme. GBP/USD fell from 1.3040 in the early Asian session to a low of 1.2978. Further losses seem likely in the near-term, while support is now seen at 1.2950 and 1.2880.
EUR/USD followed the Pound lower after the Tokyo open and fell from 1.1090 to 1.1070. The pair bounced from there however, and made it back to where it was trading before. USD/JPY fell overnight despite the broad USD strength. The pair reached a low of 102.30 after starting the day around 102.50.
The Australian Dollar declined overnight after data showed that consumer and business confidence decreased in July. AUD/USD fell from 0.7665 to a low of 0.7620. Similar price action was seen in NZD/USD, which saw a drop to 0.7130 after trading as high as 0.7160 at the Tokyo open.
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