The Pound Sterling extended its gains against the US Dollar, driven by a positive reading of economic growth in the UK and softer-than-expected data in the US, which fueled speculation of a slower economic outlook. At the time of writing, the GBP/USD trades at 1.3293, up 0.31%.
USD/CHF remains pressured near the 0.8360 level on Thursday, extending its consolidation within this week’s range. The pair is struggling to gain traction amid mixed US economic data and a resilient Swiss economy.
The EUR/USD pair maintained a steady tone near the 1.1200 zone on Thursday, reflecting a cautiously bullish stance after the European session. Price action remains within the middle of its recent range, indicating balanced sentiment despite mixed short-term signals.
EUR/JPY extended its pullback for a second consecutive session on Thursday, falling 0.5% to trade around 163.00, with the Japanese Yen (JPY) gaining traction on safe-haven flows.
The EUR/CHF cross is trading around the 0.9400 zone on Thursday, maintaining a bearish tone as it approaches the lower end of its daily range. The cross remains under pressure as traders assess a mix of technical signals, suggesting further downside risk despite some short-term bullish momentum.
Gold prices recovered some ground earlier on Thursday during the North American session after US economic data suggested that factory gate inflation continues decelerating. At the same time, consumer spending was debilitated due to US tariffs.
The New Zealand Dollar (NZD) is weakening against the US Dollar (USD) on Thursday, pressured by a stronger Greenback and cautious investor reaction to recent macroeconomic developments.
EUR/GBP is trading slightly lower near 0.8420 at the time of writing on Thursday, retreating from the previous day’s highs as the pair tests the 200-day Exponential Moving Average (EMA).
The USD/CAD pair ticks up to near the psychological level of 1.4000 during North American trading hours on Thursday. The Loonie pair trades higher despite the US Dollar (USD) trading lower following the release of the United States (US) Producer Price Index (PPI) data for April.
While delivering his prepared remarks on Framework Review at the Thomas Laubach Research Conference on Thursday, Federal Reserve (Fed) Chairman Jerome Powell said that officials agree that the strategic language around both shortfalls of employment and average inflation needs to be reconsidered.
Retail Sales in the United States (US) rose by 0.1% in April to $724.1 billion, the US Census Bureau announced on Thursday. This reading followed the 1.5% increase (revised from 1.4%) recorded in March and came in slightly better than the market expectation for a no change.
US citizens filing new applications for unemployment insurance held steady at 229K for the week ending May 10, as reported by the US Department of Labor (DOL) on Thursday. This print matched initial estimates and the previous week's revised tally of 229K (revised from 228K).
The Producer Price Index (PPI) for final demand in the US rose 2.4% on a yearly basis in April, the data published by the US Bureau of Labor Statistics showed on Thursday. This reading followed the 2.7% increase recorded in March and came in below the market expectation of 2.5%.
Mexican Peso (MXN) is weakening against the US Dollar (USD) during the US session on Thursday, as traders recalibrate expectations around monetary policy in both countries ahead of a key rate decision from the Bank of Mexico (Banxico).
Euro (EUR) is entering Thursday’s NA session with a modest 0.2% gain vs. the USD, showing losses vs. the havens while strengthening vs. the likes of AUD and NOK in a market that is trading on the disinflationary impact of a US/Iran deal, Scotiabank's Chief FX Strategist Shaun Osborne notes.
The CAD is entering Thursday’s NA session flat vs. the USD but trading somewhat defensively, reflecting the burden of lower oil prices amid the prospect of a possible US/Iran deal, Scotiabank's Chief FX Strategist Shaun Osborne notes.
Risk aversion is dominating as we head into Thursday’s NA session with a distribution of relative currency performance that is seeing notable strength from the havens Swiss Franc (CHF) and Japanese Yen (JPY) and weakness from the growth-sensitive commodity currencies NOK, NZD, and AUD.
The US Dollar Index (DXY), which tracks the performance of the US Dollar (USD) against six major currencies, is catching its breath and trades slightly lower just below the 101.00 level at the time of writing on Thursday, ahead of a chunky United States (US) economic calendar.
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