EUR/USD
The EUR/USD pair loses ground to near 1.1680 during the early European session on Thursday. The US Dollar (USD) strengthens against the Euro (EUR) after the US Federal Reserve (Fed) left interest rates unchanged. The attention will shift to the European Central Bank (ECB) interest rate decision later on Thursday.
GBP/USD
Wednesday set the trap: GBP/USD spent the early part of the week trying to defend the 1.355 area, then folded. The pair drifted lower from the European open, accelerated through the New York session, and printed a session low near 1.3460 just after 18:00 GMT, before scraping back to close near 1.3480. Three things did the damage: First, Donald Trump’s “No More Mr. Nice Guy” Truth Social post just after 08:00 GMT, which pushed Brent above $110/bbl and gave the US Dollar (USD) a fresh safe-haven bid. Then, the Federal Reserve (Fed) held at 3.5% to 3.75%, which on its own was priced to perfection but came with the most divided Federal Open Market Committee (FOMC) vote since 1992. Finally, Fed Chair Jerome Powell’s farewell press conference leaned hawkish enough to push the 10-year US Treasury yield above 4.4%. Cable went into Thursday looking heavy.
USD/JPY
The USD/JPY is trading near the 160.20 price region, near a two-year high, after the Federal Reserve (Fed) decided to hold interest rates as widely anticipated, marking the last meeting chaired by Jerome Powell.
AUD/USD
AUD/USD drops towards 0.7100 on Wednesday, down some 1%, as the Federal Reserve (Fed) held rates unchanged and Fed Chair Jerome Powell hints that, once his term as chief ends, he will remain on the Fed’s board.
NZD/USD
The NZD/USD pair attracts some sellers to around 0.5865 during the early European session on Wednesday. Traders prefer to wait on the sidelines ahead of the US Federal Reserve (Fed) interest rate decision later on Wednesday, with no change in rate expected. Jerome Powell’s press conference will be closely watched.
USD/CAD
USD/CAD trades essentially flat on Wednesday, last seen near 1.3680 after a brief whipsaw spike to about 1.3710 was quickly retraced. The session was otherwise subdued, with the pair holding a tight 40-pip band through most of the European morning before a sharp upside burst printed the intraday high; the move was faded inside the same hour. The rejection from the highs leaves a clear upper wick close to the top of the two-day range built off Tuesday’s bounce from levels close to 1.3600.
USD/CHF
USD/CHF extends its gains for the third consecutive day, trading around 0.7920 during the Asian hours on Thursday. The pair advances as the US Dollar (USD) rebounds from intraday losses, holding gains after the Federal Reserve (Fed) kept rates unchanged but struck a more hawkish tone amid rising inflation concerns.
CRUDE OIL
Oil prices rose on Thursday, with Brent hitting a four-year high after a report showed U.S. President Donald Trump considering new military options against Iran.
Gold (XAU/USD) clings to modest intraday gains through the Asian session on Thursday, albeit the lack of follow-through buying warrants caution before positioning for any meaningful recovery from a fresh monthly low set the previous day. The US Dollar (USD) enters a bullish consolidation phase following Wednesday’s relatively hawkish Federal Reserve (Fed)-inspired rise to a two-and-a-half-week high and is seen as a key factor acting as a tailwind for the commodity.
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