Session Recap: USD on the defensive

FXstreet.com (Córdoba) - The dollar is on the defensive along with stocks on Thursday after comments from the Federal Reserve about tapering its QE program. European markets traded with broad losses, following their Asian peers lower, also weighed by disappointing data from China.

EUR/USD opened down on the back of the risk adverse environment but the pair gained traction as the European session got underway, helped by slightly improved euro zone PMIs. USD weakness has been more evident against the yen and the franc, as USD/JPY and USD/CHF dropped over 2.3% and 1.5% respectively.

Main Headlines in Europe (in chronological order):

Germany: Flash PMI Manufacturing contraction slows down in May

EMU: Flash PMI Manufacturing surprises to the upside in May

UK: Annual GDP expands 0.6% in Q1, as expected

Commodities Brief – Precious metals edging higher after yesterdays shakeup, crude moves towards 92.82 support

Spanish borrowing costs rise again at debt auction

EUR ending near term correction – Commerzbank

EU leaders agree to pause austerity, speed up fight against tax evasion

European equities plummet Thursday