Session Recap: Syrian fears spread risk aversion; Oil jumps & USD declines

FXstreet.com (San Francisco) - Syria was the theme of the day as the US is planning an action against the Damascus' government. Volume remained low and risk aversion was the note. The US Dollar index closed at session lows below the 81.20 level.

The EUR/USD advanced to test the 1.3400 area and now it is closing around 1.3385. The USD/JPY collapsed 150 pips in the day to test the 97.00 area. The AUD/USD declined again today to price below the 0.8950 and close around 0.8985. The USD/CAD performed negative for third day and extended losses below 1.0500.

On the other hand, the GBP/USD declined to 2-week lows at 1.5480 but the Cable managed to recover losses and it closes around 1.5540.

Most meaningful was the rally in related market as the oil jumped 2.8% on the day to August highs around 109.32. And the Gold broke above the 1,400 area to price at 1,424/oz as the highest level since early June.

Main Headlines in the American Session:

July US Chicago Fed manufacturing index 95.8 vs 96.0 prior

US: S&P/Case-Shiller home price index rises 12.1% YoY in June

US: Richmond Fed index rises sharply in August

US: Consumer confidence index rises to 81.5 in August

Gold capped at 1420 resistance, break of which could target 1480

Wall Street collapses amid potential US action in Syria