EUR/USD
United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann highlight that EUR/USD has broken above prior resistance, with rapid gains seen up to 1.1482. Intraday, the pair is seen capable of testing 1.1490 while staying below significant resistance at 1.1520. Over the next 1–3 weeks, upward momentum is building quickly, with an upside bias as long as 1.1405 strong support holds.
GBP/USD
The British Pound (GBP) remains almost muted against its major currency peers after the release of the monthly United Kingdom (UK) Gross Domestic Product (GDP) data for May. The Office for National Statistics (ONS) has reported that the economy expanded 0.1%, as expected, after contracting at a similar pace in April.
USD/JPY
The USD/JPY pair loses ground to near 162.15 during the Asian trading hours on Thursday. The Japanese Yen (JPY) strengthens against the US Dollar (USD) after verbal intervention from Japanese authorities. Traders await the release of the US June Retail Sales data later on Thursday for fresh impetus.
AUD/USD
AUD/USD loses ground after two days of gains, trading around 0.7000 during the Asian hours on Thursday. The pair remains in negative territory as the Australian Dollar (AUD) holds losses following the release of the Consumer Inflation Expectations, which fell by 0.8% in July to 4.7%, from 5.5% prior.
NZD/USD
NZD/USD inches lower after two days of gains, trading around 0.5840 during the Asian hours on Thursday. Traders are adopting a highly cautious stance ahead of Friday’s looming June food inflation data, which follows a sharp acceleration in figures back in May. This anxiety is being compounded by escalating conflict in the Middle East and climbing oil prices, both of which are intensifying global inflation fears and fueling expectations of further interest rate hikes.
USD/CAD
The USD/CAD pair is seen oscillating in a range during the Asian session on Thursday and consolidating its recent losses to a four-week low, touched the previous day. Spot prices currently trade just below mid-1.4000s, nearly unchanged for the day, though the fundamental backdrop favors bearish traders.
USD/CHF
USD/CHF inches lower after opening at a bullish gap, remaining in positive territory and trading around 0.8060 during the Asian hours on Thursday. The pair holds ground as the US Dollar (USD) recovers its daily losses amid rising risk aversion, which could be attributed to United States (US)-Iran tensions boosting oil prices and sparking fresh inflation concerns. This geopolitical friction threatens to prolong the Federal Reserve’s (Fed) higher interest rate environment.
CRUDE OIL
Oil prices climbed for a fourth straight session on Thursday as the U.S. intensified military operations against Iran, stoking concerns over prolonged disruptions to shipping through the Strait of Hormuz.
Gold (XAU/USD) maintains its offered tone through the Asian session on Wednesday and currently trades near the previous day’s swing low, around the $4,030-$4,025 region. Despite soft US Consumer Price Index (CPI) and Producer Price Index (PPI) reports, elevated crude oil prices keep the possibility of a US Federal Reserve (Fed) interest rate hike later this year firmly on the table. This offers some support to the US Dollar (USD) and drives flows away from the non-yielding bullion.
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