EUR/USD
EUR/USD holds positive bias near 1.0500 in the European session on Thursday amid a broad US Dollar retreat. However, the upside remains capped amid expectations for more ECB rate cuts in 2025. ECB policy announcements and Lagarde’s press conference are on tap.
GBP/USD
GBP/USD recovers its recent losses and heads toward 1.2800 in the European morning on Thursday. The pair bounces as the US Dollar corrects downwards after breaking its four-day winning streak despite higher US Treasury yields. Focus shifts to US PPI and Jobless Claims data.
USD/JPY
The Japanese Yen (JPY) attracts fresh sellers following an Asian session uptick and lifts the USD/JPY pair to mid-152.00s in the last hour, closer to a two-week high touched the previous day. Traders have been pricing out the possibility of another interest rate hike by the Bank of Japan (BoJ) in December. This, along with a further rise in the US Treasury bond yields and a generally positive tone around the equity markets, turn out to be key factors undermining the JPY.
AUD/USD
The Australian Dollar (AUD) halts its two days of losses against the US Dollar (USD) on Thursday. The AUD remains stronger after the release of domestic mixed employment data. The seasonally adjusted Employment Change increased by 35,600, bringing the total number of employed people to 14,535,500 in November. This exceeded the previous reading of 12,100 and the expected figure of 25,000. Meanwhile, the Unemployment Rate fell to 3.9%, the lowest since March, lower than market estimates of 4.2%.
NZD/USD
The NZD/USD pair trades with mild gains around 0.5790 during the early Asian session on Thursday. Trump trade risks continue to undermine the China-proxy New Zealand Dollar (NZD). Traders await the release of the US November Producer Price Index (PPI) for fresh impetus, which is due later on Thursday.
USD/CAD
USD/CAD extends its losses for the second successive day, trading around 1.4150 during the Asian session on Thursday. The USD/CAD pair continues its retreat from Wednesday’s high of 1.4194, the highest level since April 2020. This downside is due to the strengthening of the Canadian Dollar (CAD) as the Bank of Canada (BoC) signaled a slower pace of future interest rate cuts following its recent decision.
USD/CHF
USD/CHF offers its recent gains as the US Dollar (USD) corrects downwards after breaking its four-day winning streak. The USD/CHF pair trades around 0.8840 during the Asian hours on Thursday. The Greenback receives downward pressure as the recent US CPI report seems not enough to keep the Federal Reserve (Fed) from cutting rates in December.
CRUDE OIL
Crude oil prices had a rocky ride this year as concerns about oversupply and timid demand remained front and center, with boosts from geopolitical tensions proving fleeting, but UBS believes next year could be more constructive for ‘black gold.’
Gold price reverses an Asian session dip to sub-$2,700 levels, though it remains below the highest level in more than a month touched earlier this Thursday. The US consumer inflation data released on Wednesday reaffirmed bets that the Federal Reserve will deliver a third consecutive interest rate cut next week.
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