EUR/USD
EUR/USD extends its losses for the third successive session, trading around 1.1540 during the Asian hours on Thursday. The pair depreciates as the US Dollar (USD) remains stronger, as surging energy prices heightened inflationary risks and reduced the likelihood of Federal Reserve (Fed) interest rate cuts.
GBP/USD
The Pound Sterling (GBP) remains firm during the North American session on Wednesday, even though the Middle East conflict entered its twelfth day of hostilities. Inflation in the US boosted the Greenback’s prospects, yet GBP/USD trades at around 1.3400, virtually unchanged.
USD/JPY
UOB strategists Quek Ser Leang and Peter Chia highlight a strong USD/JPY rally to just under 159.00, driven by higher US yields. Intraday, they see scope for a test of 159.45 while warning that deeply overbought conditions make further gains difficult. Over the next few weeks, a break above 159.45 would shift focus to 160.00, with 158.00 as strong support.
AUD/USD
The AUD/USD pair attracts some sellers during the Asian session on Thursday, and for now, seems to have snapped a four-day winning streak to its highest level since June 2022, around the 0.7185 region, touched the previous day. Spot prices currently trade around the 0.7130 area, down 0.30% for the day, though the downside potential seems limited.
NZD/USD
NZD/USD remains weaker for the third consecutive day, trading around 0.5900 during the Asian hours on Thursday. The pair declines as the US Dollar (USD) remains stronger, as surging energy prices heightened inflationary risks and reduced the likelihood of Federal Reserve (Fed) interest rate cuts.
USD/CAD
The USD/CAD pair trades in negative territory around 1.3600 during the early European trading hours on Thursday. A rise in crude oil prices provides some support to the commodity-linked Canadian Dollar (CAD). The US weekly Initial Jobless Claims report will be released later on Thursday.
USD/CHF
The USD/CHF pair gathers strength to around 0.7820 during the early European session on Thursday. The US Dollar (USD) strengthens against the Swiss Franc (CHF) as soaring oil prices threaten to spur inflation and force the US Federal Reserve (Fed) to adopt more hawkish policy stances.
CRUDE OIL
Oil futures spiked, extending a bout of volatility in crude despite efforts by the International Energy Agency to roll out its largest-ever release of strategic oil reserves to help quell the fluctuations.
The U.S. has also said it would tap its own oil reserves, although analysts have flagged that the moves may only provide a temporary respite — and only a reopening of tanker traffic through the vital Strait of Hormuz waterway will offer relief for markets shorn of key supplies.
Gold (XAU/USD) recovers a major part of its intraday losses and trades just above the $5,165 level during the early European session on Thursday, down less than 0.20% for the day. A further escalation of the military conflict between Israel, US forces, and Iran keeps geopolitical risks in play, which, in turn, assists the safe-haven precious metal to attract some buyers near the $5,125 area. In fact, Iran’s Islamic Revolutionary Guard Corps (IRGC) said that it launched a joint operation with Lebanon’s Hezbollah against targets in Israel, Jordan, and Saudi Arabia. Furthermore, the lack of follow-through US Dollar (USD) buying turns out to be another factor lending some support to the commodity.
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