EUR/USD
EUR/USD remains under modest pressure below 1.0300 in early Europe on Thursday. Dovish ECB-speak continue to reinforce expectations of further policy easing, driven by Eurozone’s weak economic outlook, weighing negatively on the pair ahead of ECB Minutes and US data.
GBP/USD
GBP/USD stays on the back foot below 1.2250 in the European morning on Thursday. The pair remains undermined by a modest US Dollar uptick, increased bets of BoE interest rate cuts and concerns over the UK economic prospects. US monthly GDP and industrial data are awaited.
USD/JPY
The Japanese Yen (JPY) trims a part of strong intraday gains against its American counterpart, lifting the USD/JPY pair back above the 156.00 mark heading into the European session on Thursday. Expectations that the Federal Reserve (Fed) could cut interest rates twice this year, along with easing fears about US President-elect Donald Trump’s disruptive trade tariffs, remain supportive of the risk-on mood. This turns out to be a key factor that undermines the safe-haven JPY and assists the currency pair in finding decent support ahead of the 155.00 psychological mark.
AUD/USD
The Australian Dollar (AUD) broke its three-day winning streak against the US Dollar (USD) following the Australian Employment report released on Thursday. According to the Australian Bureau of Statistics (ABS), the seasonally adjusted Unemployment Rate rose to 4.0% in December, compared to 3.9% in November, aligning with market expectations.
NZD/USD
NZD/USD remains above 0.5600 during the Asian hours on Thursday following three successive days of gains. The pair received gains as the US Dollar (USD) extended its downside following the cooler-than-expected US Consumer Price Index (CPI) inflation data for December raises the bet that the US Federal Reserve (Fed) could cut interest rates twice this year.
USD/CAD
The USD/CAD pair recovers to 1.4355, snapping the three-day losing streak during the early European session on Thursday. The renewed US Dollar (USD) demand provides some support to the pair. However, a rise in crude oil prices might boost the commodity-linked Loonie and cap the upside for the pair.
USD/CHF
The USD/CHF pair trades on a flat note around 0.9125 during the early European trading hours on Thursday. The Greenback struggles to gain ground after cooler US inflation data heightens the expectations of potential Federal Reserve (Fed) rate cuts. Traders await the US December Retail Sales and weekly Initial Jobless Claims, which will be published later on Thursday.
CRUDE OIL
Oil prices gained for a second session on Thursday, supported by worries over supply amid U.S. sanctions on Russia, a larger-than-forecast fall in U.S. crude oil stocks, and an improving global demand outlook.
Gold price pulls back after touching over a one-month peak earlier this Thursday. The emergence of some USD dip-buying and the risk-on mood caps the XAU/USD. Concerns about Trump’s trade tariff plans could limit losses for the precious metal.
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