Wall Street eased from record highs and Asian shares tracked lower their tracks today as risk sentiment was hurt by intensifying violence in Iraq. Despite upbeat data from the United States, with new home sales surging 18.6 percent in May to the highest annualized rate since May 2008 of 504’000 units and consumer confidence index jumping to 85.2, the S&P 500 dropped after touching a fourth record high in five sessions.

Treasury prices dismissed the strong data and yields fell overnight ahead of a report today which is expected to show the American economy shrank more than previously anticipated. The US dollar is on course to record its lowest quarterly trading range in almost two years against the yen as volatility remains at record lows.

Federal Reserve officials did little to spark any volatility with a trio of policymakers giving no new hints of a change in stance from the central bank. New York Fed President Dudley said the Fed may wait to raise rates until mid-2015 without the risk of inflation spiraling out of control. The major currency pairs such as the EUR/USD and USD/JPY continued drifting without direction as forex investors expect monetary policy by the major central banks to remain loose for the foreseeable future.

USD/JPY traded in a tight range of 101.86 to 101.98 overnight while EUR/USD swung between its high and low of 1.3628 and 1.3583 yesterday.

The British pound slipped off its recent highs on Tuesday after Bank of England Governor Carney dampened expectations for an interest rate hike later this year. GBP/USD slid to 1.6954 on Wednesday, easing away from its five and a half year peak of 1.7064 hit last week.

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