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Session Recap: Risk off shuns the dollar as oil soars

FXStreet (Guatemala) - Risk off markets were in force while the Iraqi insurgency came back into the picture with Oil rocketing to 106/barrel and years high. The US data disappointed with retail sales and unemployment claims coming in below expectations.

EUR/USD managed to take something away from a greenback that was hit across the board. The pair moved to test a two-day high.

GBP/USD had been licking its wounds on the 1.68 handle but managed to scale back some losses ahead of Carney speaking up to 1.6860 which took the spotlight as Wall Street came to a close and took sterling rocketed up to eye 1.6900.

USD/JPY has been sulking below the 102 handle and extending losses post the break yesterday which was less convicting than today at least. The dollar has been in the cross fire of the Iraq tensions as Oil shot up to record highs at 106/ bbl.

Key Events:

US May retail sales came in at 0.3%, missing forecast of a 0.6% rise

US weekly jobless claims rose to 317,000 from 310,000

GBP/JPY sear and rises above 172.00

The GBP/JPY broke above 172.00 boosted by the Pound that soared across the board after Mark Carney, the governor of the Bank of England affirmed that the central bank could raise rates sooner than markets expect.
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GBP/USD: Illiquid overshoot past 1.69 on hawkish BoE Carney

GBP/USD continues on fire well above the 1.69 handle, having printed a day high of 1.6927 following the hawkish comments by BoE Governor Carney, who hinted at increasing rates sooner rather than later
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