EUR/USD
The EUR/USD pair posts modest losses near 1.1690 during the early European trading hours on Thursday. However, the US Federal Reserve’s (Fed) dovish rate cut on Wednesday could weigh on the US Dollar (USD) against the Euro (EUR). Traders await the release of the US weekly Initial Jobless Claims report, which is due later on Thursday.
GBP/USD
The GBP/USD pair trades in negative territory near 1.3365 during the early European trading hours on Thursday, pressured by the rebound in the US Dollar (USD). Nonetheless, the potential downside might be limited after the US Federal Reserve (Fed) delivered a rate cut at its December policy meeting. Traders brace for the US weekly Initial Jobless Claims report, which will be published later on Thursday.
USD/JPY
The Japanese Yen (JPY) extends its steady intraday descent against a broadly rebounding US Dollar (USD) and slides to a fresh daily low heading into the European session on Thursday. Exacerbated concerns about Japan’s public finances on the back of expanded fiscal spending under Prime Minister Sanae Takaichi’s administration turn out to be a key factor acting as a headwind for the JPY.
AUD/USD
The AUD/USD pair drifts lower during the Asian session on Thursday and erodes a part of the previous day’s strong gains to its highest level since September 17. Spot prices stick to modest losses following the release of mixed Australian employment details and currently trade just above mid-0.6600s, though the downside potential seems limited.
NZD/USD
The NZD/USD pair holds steady above the 0.5800 mark, close to an over two-month high touched the previous day, during the Asian session. Moreover, the fundamental backdrop favors bullish traders and suggests that the path of least resistance for spot prices remains to the upside.
USD/CAD
The USD/CAD pair enters a bearish consolidation phase during the Asian session on Thursday and oscillates in a narrow band, just below the 1.3800 mark, or its lowest level since October 22. The fundamental backdrop, meanwhile, seems tilted firmly in favor of bearish traders and suggests that the path of least resistance for spot prices is to the downside.
USD/CHF
The Swiss National Bank (SNB) is scheduled to announce its last monetary policy of 2025 today at 08:30 GMT.
The SNB is expected to hold interest rates steady at 0% for the second meeting in a row. Swiss central bank would continue maintaining an expansionary monetary policy stance as price pressures have remained close to the lower end of 0%-2% inflation target. In November, the Swiss inflation remains flat on an annualized basis, following a 0.1% growth in October.
CRUDE OIL
Oil prices rose in Asian trading on Thursday after the United States’ seizure of a sanctioned oil tanker off the coast of Venezuela triggered fresh fears about supply disruptions, while investors weighed a fall in U.S. crude stockpiles.
Gold (XAU/USD) touches a fresh daily low during the early European session on Thursday, though it lacks follow-through and rebounds slightly from the $4,200 neighborhood. The US Dollar (USD) attracts some buyers and recovers a part of the previous day’s post-FOMC slump to its lowest level since October 24. This, in turn, fails to assist the commodity in capitalizing on its modest intraday uptick to the weekly high.
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