EUR/USD
The EUR/USD pair weakens to near 1.0370 during the Asian trading hours on Thursday. The hawkish rate cut by the US Federal Reserve (Fed) lifts the US Dollar (USD) and drags the major pair lower. Later on Thursday, the US weekly Initial Jobless Claims, Existing Home Sales, and final reading of Gross Domestic Product Annualized for the third quarter (Q3) will be released.
GBP/USD
GBP/USD gains ground after declining more than 1% following the Federal Reserve’s (Fed) hawkish cut on Wednesday, trading around 1.2590 during the Asian hours on Thursday. The Pound Sterling (GBP) gains upward support as the Bank of England (BoE) is anticipated to keep interest rates unchanged later in the day while remaining focused on addressing elevated domestic inflation.
USD/JPY
USD/JPY is back above 155.00, refreshing monthly highs following the BoJ policy verdict. The BoJ left the short-term rate target unchanged in the range of 0.15%-0.25%. The decision came in line with the market expectations. Governor Ueda’s press conference is now awaited.
AUD/USD
AUD/USD rebounds from two-year lows of 0.6200 early Thursday. The pair benefits from a pause in the hawkish Fed cut-led US Dollar uptrend. However, concerns about China’s fragile economic recovery and Trump’s tariff plans could cap the Aussie’s recovery.
NZD/USD
The NZD/USD pair attracts some sellers to around 0.5630 during the early Asian session on Thursday. The weaker-than-expected New Zealand’s Gross Domestic Product (GDP) data and hawkish rate cut by the US Federal Reserve (Fed) exert some selling pressure on the pair.
USD/CAD
The USD/CAD pair retreats slightly after touching its highest level since March 2020, around the 1.4465 region during the Asian session on Thursday and for now, seems to have snapped a five-day winning streak. Spot prices currently trade near the 1.4430 area, or the daily low, though any meaningful corrective decline seems elusive.
USD/CHF
The USD/CHF pair moves slightly higher to near 0.8945 in the North American session ahead of the Federal Reserve’s (Fed) monetary policy meeting at 20:00 GMT. The Fed is expected to deliver a 25-basis points (bps) interest rate reduction with slightly hawkish remarks on the policy outlook.
CRUDE OIL
Oil prices fell in Asian trade on Thursday after the U.S. Federal Reserve signalled it would slow the pace of interest rate cuts in 2025, which could slow economic growth and reduce fuel demand.
Gold price attracts some haven flows amid the post-FOMC sell-off in the equity markets. The Fed’s hawkish outlook continues to lift the US bond yields and caps the XAU/USD. Traders now look to the US Q3 GDP for some impetus ahead of the US PCE data on Friday.
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