GBP/USD tumbles during the North American session on Thursday as the US Dollar reaches a 9-week high, as depicted by the US Dollar Index (DXY), hitting 99.51 as hedge funds increase bets on USD gains towards the year-end.
The Euro (EUR) remains under broad selling pressure against the US Dollar (USD) on Thursday, extending losses below the 1.1600 mark as the abrupt resignation of French Prime Minister Sébastien Lecornu sparks caution among investors and dampens appetite for the common currency.
Gold (XAU/USD) is under modest pressure on Thursday after smashing through the $4,000 psychological mark and setting a fresh all-time high of $4,059 on the previous day.
The Euro (EUR) is trading defensively with a marginal 0.1% decline against the US Dollar (USD), softening back toward Wednesday’s lows around 1.16, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret note.
There is a chance for US Dollar (USD) to test 153.00 again before a more sustained and sizeable pullback can be expected. In the longer run, further USD strength is likely; the level to watch is 153.80, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
The US government shutdown is keeping bearish risks like a hawkish repricing in interest rates expectations away as key US data continues to get delayed. The path of least resistance remains to the upside.
New Zealand Dollar (NZD) is likely to range-trade between 0.5760 and 0.5805. In the longer run, outlook for NZD has shifted to negative; the level to watch is 0.5690, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
The current price movements are likely part of a sideways trading phase between 0.6570 and 0.6605. In the longer run, the odds of AUD breaking below 0.6555 are increasing, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
EUR/JPY holds its position near the fresh all-time high of 177.94, which was recorded during the earlier hours on Thursday, currently trading around 177.50 during the European hours.
Pound Sterling (GBP) is likely to range-trade between 1.3365 and 1.3430. In the longer run, there has been no marked increase in downward momentum, but the downside bias toward 1.3325 remains intact, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Instead of continuing to decline, EUR is likely to trade in a range between 1.1600 and 1.1660. In the longer run, risk for EUR remains on the downside, likely toward the major support at 1.1570, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
After a strong few days, the dollar rally has started to stall. Notably, the media pushing the hawkish elements of the FOMC minutes failed to move both the dollar and short-dated US yields last night.
In recent weeks, the foreign exchange market has turned its attention to the sustainability of G10 countries' debt. France is once again in the spotlight, as yet another prime minister has fallen victim to the challenging budgetary situation.
EUR/CHF is edging lower toward the ascending trend line that has guided price action since April, as the pair continues to fluctuate around its 50-day moving average.
Due to the sharp rise in the price of gold, Australia's gold exports have also increased significantly in recent weeks. In the first eight months of this year, the share of Australian gold exports in total exports rose to over 10%. This is the first time since 1988, when data collection began.
EUR/USD's recovery is losing steam ahead of Friday's US session opening. The pair is trading right above 1.1560 at the time of writing, down from session highs near 1.1590.
News emerged last night from former French Prime Minister Sébastien Lecornu that President Macron could announce a new PM by Friday evening. This has come as a surprise to a market that had felt that the next chapter in the French political saga could only be new and divisive elections.
Silver price (XAG/USD) extends its gains after registering more than 2% gains, reaching the new 14-year high of $49.55 in the previous session and currently trading around $49.10 during the European hours on Thursday.
The EUR/CAD cross holds steady near 1.6225 during the early European session on Thursday. The political crisis in France after the shock resignation of France’s Prime Minister Sebastien Lecornu and his government could weigh on the Euro (EUR) against the Canadian Dollar (CAD).
The GBP/USD pair attracts some buyers during the Asian session on Thursday and moves away from a nearly two-week trough, around the 1.3370 area touched the previous day.
The U.S. has approved several billion dollars in Nvidia AI chip sales to the UAE under a bilateral AI agreement, the first since Trump took office. The deal includes a reciprocal Emirati investment in the U.S. and reflects Washington’s push to strengthen Gulf tech ties.
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