The US Dollar (USD) remains under pressure as soft labor data and speculation about a more dovish Fed tilt weigh on sentiment, even as OIS markets resist pricing deeper cuts.
The number of US citizens submitting new applications for unemployment insurance went down to 191K for the week ending November 29, according to a report from the US Department of Labour (DOL) released on Thursday.
The Euro (EUR) weakens against the Japanese Yen (JPY) on Thursday as the Yen outperforms major peers, buoyed by growing speculation that the Bank of Japan (BoJ) could raise interest rates at its upcoming December 19 monetary policy meeting.
The US Dollar is showing moderate gains against its Canadian counterpart on Thursday, trading at 1.3970 after bouncing from five-week lows near 1.3940.
Gold (XAU/USD) holds steady on Thursday, moving quietly within the $4,160-$4,260 range as investors adopt a wait-and-see approach ahead of the Federal Reserve’s (Fed) monetary policy meeting next week.
The US Dollar-Yen recovery attempt seen during Thursday’s early Asian session was capped at 155.50, and the pair resumed its broader bearish trend during the European trading session, breaching Monday’s low of 154.65 to hit fresh two-week lows near 154.50 at the time of writing.
Gold (XAU/USD) is posting minor losses for the third consecutive day on Thursday, weighed by lower demand for safe havens amid a moderate risk appetite. The precious metal, however, remains supported above the mid-range of the $4,100s with the $4,264 high at a short distance.
USD/CNH bounced from a one-year-plus low as the PBOC set a higher-than-expected fixing, signaling managed support for yuan appreciation. A stronger Yuan could help China pivot towards consumer-led growth, while the USD/CNH downtrend remains intact, BBH FX analysts report.
USD/JPY dipped below 155.00 as strong demand for Japan’s 30-year government bonds pushed yields lower, highlighting investor appetite ahead of the Bank of Japan’s (BoJ) December rate decision, BBH FX analysts report.
GBP/USD remains supported after yesterday’s rally, trading above its 200-day moving average, even as the DMP survey signals moderate wage growth, BBH FX analysts report.
US Dollar (USD) remains mixed as bets on Fed rate cuts rise amid disappointing ADP payrolls and signs of easing inflation pressures. US labor market shows strain with negative job trends, even as services activity holds up, keeping focus on upcoming job cuts and claims data, BBH FX analysts report.
The Eurozone Retail Sales, which is a key measure of consumer spending, remains flat month-on-month (MoM) in October, while it was expected to grow by 0.1%, reported by Eurostat on Thursday. In September, the consumer spending measure rose by 0.1%, revised from a negative 0.1%.
The Euro is picking up from five-week lows near 0.8735 on Thursday, as the Pound loses steam, following Wednesday’s rally. The pair, however, maintains its bearish trend intact, with technical indicators pointing lower and investors upbeat about the details of the UK budget.
USD/BRL remains range-bound after hitting an interim low near 5.27, with momentum indicators showing potential for a pause in the downtrend, Société Générale's FX analysts note.
EUR/USD has broken above the upper boundary of a descending channel, extending its upward momentum while holding support at 1.1550, Société Générale's FX analysts note.
The US Dollar (USD) fell below 99, benefiting the pound, NOK, AUD, and NZD, amid signs of weak labor demand and easing service-sector inflation pressures.
Silver prices (XAG/USD) fell on Thursday, according to FXStreet data. Silver trades at $57.11 per troy ounce, down 2.36% from the $58.49 it cost on Wednesday.
The Pound Sterling (GBP) shrugged off Autumn Budget worries, supported by orderly gilt markets and cautious OBR growth forecasts. Softening US Dollar (USD) and Fed-cut expectations continue to drive GBP gains, DBS' Senior FX Strategist Philip Wee notes.
The New Zealand Dollar bears have been contained above the mid-range of the 0.5700s on Thursday, and the pair bounced up in the early European session, returning to levels five-month highs, near 0.5780.
The Pound Sterling (GBP) clings to gains near its over-a-month high around 1.3350 against the US Dollar (USD) during the European trading session on Thursday.
EUR/USD keeps trading back and forth on Wednesday, and holds marginal gains on the daily chart at 1.1670, after hitting the highest levels in more than six weeks, at 1.1682.
European Central Bank (ECB) executive board member Piero Cipollone said in an interview with Nikkei during the European trading session on Thursday that monetary policy adjustments would be required if economic conditions don’t act in line with expectations.
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