EUR/USD
The EUR/USD pair loses ground to around 1.1785 during the early European trading hours on Thursday. The Euro (EUR) softens against the US Dollar (USD) as Eurozone inflation declined well below target ahead of the European Central Bank (ECB) interest rate decision. The German Factory Orders and Eurozone Retail Sales are also due later on Thursday.
GBP/USD
GBP/USD extends its losses for the second successive session, trading around 1.3620 during the Asian hours on Thursday. The pair weakens as the Pound Sterling (GBP) comes under pressure ahead of the Bank of England’s (BoE) interest rate decision later in the day.
USD/JPY
The Japanese Yen (JPY) extends its sideways consolidative price move against a broadly firmer US Dollar (USD) and currently trades near a two-week low, touched earlier this Thursday. Investors remain worried about Japan’s financial health on the back of Prime Minister Sanae Takaichi’s expansionary fiscal plans. This, along with political uncertainty ahead of the snap election on February 8, has been another bearish development for the JPY and contributes to its relative underperformance.
AUD/USD
The AUD/USD pair trades marginally lower around 0.7020 during the European trading session on Thursday. The Aussie pair ticks down as the US Dollar (USD) trades higher ahead of the key United States (US) economic data releases in the North American session.
NZD/USD
The NZD/USD pair trades on a softer note near 0.5980 during the Asian trading hours on Thursday. The New Zealand Dollar (NZD) edges lower against the Greenback amid rising Unemployment Rates in New Zealand. Federal Reserve (Fed) Atlanta President Raphael Bostic is set to speak later on Thursday.
USD/CAD
USD/CAD extends its gains for the second successive session, trading around 1.3680 during the Asian hours on Thursday. The pair is supported by a firmer US Dollar (USD) as markets price in a slower pace of potential Federal Reserve (Fed) rate cuts.
USD/CHF
The USD/CHF pair holds positive ground near 0.7780 during the early European session on Thursday, bolstered by renewed US Dollar (USD) demand. Analysts expect the Greenback’s recovery will be short-lived as traders remain concerned about the Federal Reserve’s (Fed) independence.
CRUDE OIL
Oil prices fell more than $1 a barrel on Thursday after the U.S. and Iran agreed to hold talks in Oman on Friday, easing concerns that a potential military conflict between them could disrupt supplies from the key Middle East producing region.
Gold (XAUUSD) is consolidating below the $5,000 mark as shifting macro conditions pressure recent gains. The metal initially advanced on expectations that Kevin Warsh could steer the Fed toward a more dovish stance, weakening the Dollar and lifting gold. However, stronger-than-expected U.S. inflation data reversed that move, triggering Dollar strength and renewed downside in gold. While geopolitical tensions briefly supported safe-haven flows, those gains faded quickly. With price hovering near $4,900, gold continues to consolidate as markets reassess the policy outlook and inflation risks.
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