ForexLive US wrap-up: Fed all but announces quantitative ease

New York Fed president Dudley: Further action is likely to be warranted US personal income rises 0.5%, incomes rise 0.4% Univ of Michigan consumer sentiment 68.2 final in September from 66.6 prelim ISM declines to 54.4 in September from 56.3 in August, in line with forecasts RBA likely to hike next week: RBA watcher McCrann Chicago Fed's Evans: Further policy accommodation is desirable ECB's Draghi: Must be careful not to leave excess liquidity in system too long Canada's Flaherty: Next week's G7 meeting will focus on inflexible Asian ccys S&P 500 closes at 1146, up 0.4% 10-yr note closes unch at 2.51%l oil rises $1.60 to 81.60, gold at record at $1318 EUR/USD closes at the weeks highs, spurred by exceeding dovish comments from Bill Dudley, the head of the New York Fed, the vice chairman of the FOMC and the first among equals among regional Fed presidents. He said low inflation and high unemployment mean the Fed has to act to get them back toward the Fed's Congressional mandate. His comments were echoed by his colleague from Chicago, Charlie Evans. We end at 1.3782/84. USD/JPY did little other than hold above key trend lows at 82.87. 83.15 was the session low, 83.44 the high at mid-afternoon as EUR/JPY flirted with a topside breakout, rising to 114.80/85. EUR/GBP buying kept a lid on GBP gains. Cable closes firm, but well-below the weeks highs of 1.5925. Friday ends at 1.5842. EUR/GBP continues to grind higher as the ECB talks about ending its accomodative policy next year despite banks still relying on the ECB for the bulk of their funding. The cross ends at 0.8703, the highest level since May. AUD/USD reached 0.9751 for a split second before reversing below 0.9700 in double-quick time. There will undoubted be an argument whether 0.9750 barriers were triggered...We end at 0.9730, the highest close in more than two years  with the market expecting the Fed to keep the monetary pedal to the metal. USD/CAD played catch-up on the downside late in the US session, falling to 1.0185 before closing at 1.0205. Surging crude helped give the Loonie a new lease on life despite receding fears that the BOC will hike this month.