The US Dollar (USD) exhibits volatile action during North American trading on Thursday, with the US Dollar Index (DXY) showing wild moves near 99.50 after the United States (US) House of Representatives approved President Donald Trump’s tax bill narrowly and passed it to the Senate.
The EUR/GBP cross edges lower on Thursday, retreating after a three-day rally to trade near 0.8420 at the start of the American session as investors digest a mixed batch of economic data from both sides.
US citizens filing new applications for unemployment insurance receded a tad to 227K for the week ending May 17, as reported by the US Department of Labor (DOL) on Thursday. This print came in below initial estimates and the previous week's unrevised tally of 229K.
The British Pound Sterling (GBP) has been gaining steadily against the US Dollar (USD) since January, reflecting diverging economic conditions between the United Kingdom and the United States.
In an interview with Fox Business on Thursday, Federal Reserve (Fed) Governor Christopher Waller reiterated that he continues to believe that tariffs will cause a one-time increase in prices and added that the Fed's standard playbook is to look through one-time price impacts, per Reuters.
The accounts of the European Central Bank's (ECB) April policy meeting showed on Thursday that policymakers had increased confidence that inflation would return to target in line with the March baseline projections.
Japanese Yen (JPY) is entering Thursday’s NA session with a modest gain against the US Dollar (USD), a lone performer in an environment of mild (albeit broad-based) USD strength, Scotiabank's Chief FX Strategist Shaun Osborne notes.
Pound Sterling (GBP) is down 0.2% against the US Dollar (USD) and a mid-performer among the G10, trading relatively well despite a generally disappointing preliminary PMI release, Scotiabank's Chief FX Strategist Shaun Osborne notes.
The US Dollar (USD) is consolidating. Global market sentiment remains soft, following yesterday’s hefty US equity market losses. Asian and European stocks are down and US equity futures are narrowly mixed, Scotiabank's Chief FX Strategist Shaun Osborne notes.
Euro (EUR) is entering Thursday’s NA session with a 0.3% decline against the US Dollar (USD) and underperforming most of the G10 currencies with the exception of SEK and NZD, Scotiabank's Chief FX Strategist Shaun Osborne notes.
This US administration does not formulate any doctrine or strategy in important policy areas that could serve as guidelines for current policy measures.
The Australian Dollar (AUD) inches lower against the US Dollar (USD) on Thursday, erasing earlier gains. The AUD/USD pair is holding within a narrow range, down 0.50% at the time of writing, to trade around 0.6420 in the European trading hours.
The USD/JPY pair recoups its initial losses and flattens around 143.50 during European trading hours on Thursday. The pair rebounds as the US Dollar (USD) attracts bids on Thursday after a three-day losing streak.
AUD/USD remains under pressure as weak May PMI data supports expectations for RBA rate cuts. The pair struggles to hold above its 200-DMA, with markets now pricing in 75bps of easing over the next year, BBH FX analysts report.
USD/JPY had a brief uptick after the US and Japan confirmed existing currency policy and did not discuss foreign exchange levels. USD/JPY subsequently edged lower while Japanese government bond yields are breaking higher at the long-end of the curve, BBH FX analysts report.
Gold price (XAU/USD) slumps below $3,300 during North American trading hours on Thursday after surrendering initial gains, following a revisit of the two-week high around $3,345 earlier in the day.
United States (US) President Donald Trump's sweeping tax and spending bill passed the Republican-controlled House of Representatives on Thursday. The bill will now move to the Senate floor.
EUR/GBP ended the day higher following UK inflation data for April surprising significantly to the topside, relative to both consensus and BoE estimate, Danske Bank's FX analysts report.
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