EUR/USD is holding mild gains at around 1.0550 in early Europe. The US Dollar is losing ground, despite a cautious risk tone and firmer US Treasury bond yields. Investors assess the Fed and ECB rate hike expectations. The focus shifts to the US jobs data.
The GBP/USD pair is juggling near 1.1850 mark in the Asian session. The Cable is gathering strength to scale above the aforementioned resistance. However, the odds are favoring for resumption of the downside.
USD/JPY is slightly pressured and is testing below 137.00 in the Tokyo open while the US Dollar paused its advance following Federal Reserve Jerome Powell’s second day on Capitol Hill. Meanwhile, in recent trade, Japan’s Gross Domestic Product was released by the Cabinet Office as follows:
- Japanese GDP Annualised SA (QoQ) Q4 F: 0.1% (exp 0.8%; prev 0.6%).
- GDP SA (Q/Q) Q4 F: 0.0% (exp 0.2%; prev 0.2%).
- GDP Nominal SA (QoQ) Q4 F: 1.2% (exp 1.3%; prev 1.3%) .
The AUD/USD pair is displaying a subdued performance below 0.6600 in the Asian session. The upside in the Aussie asset seems restricted as Reserve Bank of Australia (RBA) Governor Philip Lowe has considered a pause in the rate-hiking spree and the Chinese economy is struggling to accelerate domestic demand despite significant reopening measures.
NZD/USD retreat towards the multi-day low marked the previous day while staying with a one-month-old descending trend channel, pressured around 0.6105 during the early Thursday morning in the Asia-Pacific zone.
The USD/CAD pair has scaled above the 1.3800 mark in the early Asian session. The Lonnie asset has been strengthened further by unchanged monetary policy by the Bank of Canada (BoC) and hawkish remarks from Federal Reserve (Fed) chair Jerome Powell in his testimony before Congress.
The USD/CHF pair is holding its auction above the critical support of 0.9400 in the early Asian session. The Swiss Franc asset is expected to resume its upside journey later as solid United States labor market data indicates that the fears of persistent inflation in the sentiment of Federal Reserve (Fed) policymakers are real and bigger rates are in pipeline to squeeze galloping inflation.
Oil prices kept to a tight range on Thursday, nursing two days of steep losses as middling demand cues from China and hawkish signals on U.S. interest rates brewed increasing concerns over more headwinds to crude consumption this year.
Gold price is treading water above the $1,800 level, lacking a clear directional impetus. Investors turn cautious, as the dust settles over the market volatility stirred by the US Federal Reserve (Fed) Chair Jerome Powell’s hawkish comments.
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