Forex headlines for July 29, 2014:

The GDP report breathed life into the US dollar but the Fed took some of it away. In the end, no side finished the day with the definitive upper hand.

USD/JPY was the big winner on the day, gaining three quarters of a cent in a relatively orderly move. The gains started after the GDP report in a quick move to 102.50 from 102.20. It was a slow squeeze higher from there as the bond market took a battering and not long before the FOMC it traded at 103.00. Some profit taking knocked it back to 102.89 ahead of the FOMC and then the regular round of volatility hit on the FOMC and it spiked to 103.09 before falling back to 102.74 and closing near 102.86.

The dollar struggled to hold post-GDP gains elsewhere.

EUR/USD fell to an 8-month low of 1.3367 on the upbeat growth numbers from 1.3400 but climbed back after Yellen failed to give the hawks something substantial. Last at 1.3395.

Cable showed some interesting resilience. It was caught in the GDP move but fell less than other pairs. It held 1.6900 for a period then slipped to 1.6889. It later formed a double bottom there and springed back to 1.6918.

The commodity bloc continued to wilt. USD/CAD hit 1.0917 and AUD/USD hit 0.9304. They made some decent recoveries on the Fed but weren’t able hold those. That’s a sign of the times with many traders looking for commodity FX strength to sell.