Session Recap: USD extends its rally

FXstreet.com (Córdoba) - The USD extended its post-Fed gains versus its major rivals after the Fed said it can start to slow stimulus this year.

After weeks of speculation, Bernanke shed some light on the future of the Federal Reserve policy, saying that the Fed will likely reduce the pace of growth of the balance sheet and that the unemployment rate should fall to near 7% from its current 7.6%.

The prospects of fading stimulus helped the dollar to rally against competitors. EUR/USD slumped to below 1.3200 and GBP/USD to near 1.5400 during the European session, while USD/JPY reached a 10-day high of 98.30. AUD/USD is among the worst performers, having fallen below 0.9200 for the first time since mid-2010.

Bernanke's comments also drove stock and US bond prices sharply lower, with yields reaching multi-month highs.

Main Headlines in Europe:

SNB keeps interest rates unchanged in June

EMU: Flash PMI Manufacturing rises to 48.7 in June

UK: Annual Retail Sales grow 1.9% in May

Spanish borrowing costs rise at debt auction

European equities plunge Thursday

Commodities Brief – Gold breaches 1300, silver falls below 20.00 support