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Session Recap: Call me Bond... US bond; EUR/USD pegged at 1.3700

FXStreet (San Francisco) - After testing many times in the past two months, the US 10-year yields' February lows finally gave up and fell to 2.525%, 2014 lows. "Traders never expected yields to test 2.50% amid the Fed's steady progression toward ending QE," commented FXBeat editor Jamie Coleman.

With bonds playing down, US stocks extended its decline from all-time highs and the GBP/USD and USD/JPY traded lower; the EUR/USD, however, remained pegged to the 1.3700.

The EUR/USD traded in consolidation mode but always above the 1.3700 area, however, "the pair has little room for recoveries as long as sellers surge on spikes up to 1.3780 former critical support, while downward potential towards 1.3640/60 static support area remains intact," as Valeria Bednarik from FXStreet well said.

The GBP/USD declined for fifth day in the last six with the cable testing the 1.6750 area. The pair closed at 1.6765. The USD/JPY lost previous 2-day gains after falling from 102.25 to test the 101.75 and to close at 101.85.

Main headlines in the American session

US PPI rises 0.6% in April; core up 0.5%; hotter than expected

US yields back below key support

Buba's Weidmann: Market reaction cannot be a gauge of ECB success

Wall Street closes down as market awaits for more signals

Golds ends Wednesday above $1,300

Spot gold rose on Wednesday and finished hovering around $1,305 with a gain of $11, having the second best day since the beginning of May. T
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