EUR/USD
EUR/USD is trading on the back foot near 1.0900, as markets stay cautious ahead of Fed Chair Powell’s speech early Thursday. Traders refrain from placing fresh bets on the pair, awaiting the Spanish and German inflation data for fresh cues on the ECB’s rate hike path.
GBP/USD
GBP/USD is trading below 1.2650, languishing at two-week lows on Thursday. The Fed’s hawkish outlook continues to underpin the US Dollar, weighing on the pair. The focus shifts to Fed Chair Powell’s speech for fresh trading impetus.
USD/JPY
USD/JPY takes offers to refresh the intraday low near 144.20 as it consolidates the weekly gains at the highest levels since November 2022 during the early hours of Tokyo trading on Thursday. In doing so, the Japanese Yen (JPY) pair justifies the upbeat prints of Japan Retail Trade numbers amid lackluster trading sessions ahead of the key data/events.
AUD/USD
AUD/USD pares the biggest daily loss since early March, despite retreating from an intraday high to around 0.6605 amid early Thursday morning in Europe. In doing so, the Aussie pair eases from the daily tops while reversing Australia Retail Sales data-linked gains but stays mildly bid by the press time.
NZD/USD
The NZD/USD pair recovers a few pips from a nearly three-week low touched during the Asian session on Thursday and now trades just below the 0.6100 round-figure mark. The fundamental backdrop, however, remains tilted in favour of bearish traders and warrants some caution before positioning for any meaningful upside.
USD/CAD
The USD/CAD pair trades with a mild positive bias for the third successive day on Thursday and is currently placed around the 1.3265-1.3270 region, just below a two-week high touched the previous day. Federal Reserve Chair Jerome Powell’s hawkish remarks on Wednesday assists the US Dollar (USD) to stand near its highest level since June 15, which, in turn, is seen as a key factor acting as a tailwind for the USD/CAD pair. Speaking at a European Central Bank (ECB) conference, Powell reiterated that two rate increases are likely this year and did not rule out the possibility of a rate hike at the next FOMC policy meeting on July 25-26. Powell also said that he does not see inflation coming down to the Fed’s 2% target until 2025.
USD/CHF
The USD/CHF pair attracts some buyers for the second successive day on Thursday and climbs to the top end of its weekly range, closer to the 0.9000 psychological mark during the Asian session. The US Dollar (USD) adds to the previous day’s strong gains and touches a fresh high since June 15 in the wake of Federal Reserve (Fed) Chair Jerome Powell’s hawkish remarks on Wednesday. Speaking at a European Central Bank (ECB) conference, Powell reiterated that two rate increases are likely this year and also said that he does not see inflation coming down to the Fed’s 2% target until 2025. This, in turn, reaffirms market bets for a 25 bps lift-off at the next FOMC policy meeting on July 25-26, which continues to underpin the Greenback and acts as a tailwind for the USD/CHF pair.
CRUDE OIL
Oil prices kept to a tight range in Asian trade on Thursday, retaining strong gains from the prior session as traders awaited more cues from key U.S. and Chinese economic data in the coming days.
GOLD
Gold price is trading close to three-month lows, just a hairline short of the 1,900 mark early Thursday, as United States Dollar (USD) is extending the two-day recovery mode amid increased hawkish US Federal Reserve (Fed) expectations and ahead of a fresh batch of mid-tier US economic data releases.
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