EUR/USD is flirting with the 1.0900 mark, finding demand in Asian trading on Thursday. The pair gains amid renewed weakness in the US Dollar. The ECB hawks have pushed back against expectations of an early rate cut, lending further support to the currency pair. Lagarde and US data are on tap.
The GBP/USD pair gains ground below the 1.2700 barrier during the early European session on Thursday. The major pair trades in positive territory for the second consecutive day as traders slashed their bets on an early interest rate cut by the Bank of England (BoE).
The Japanese yen steadied at a 1-½ month low ahead of key consumer price index (CPI) data due on Friday, which is expected to show a sustained decline in inflation. The reading is expected to provide the Bank of Japan with little impetus to begin tightening its ultra-loose policy, which bodes poorly for the yen.
The AUD/USD pair remains under selling pressure during the early Asian session on Thursday. The downtick of the pair is driven by the discouraging Chinese data and the stronger US Dollar (USD) broadly. AUD/USD bounces off the fresh six-week lows near 0.6520 and currently trades around 0.6552, gaining 0.04% on the day.
The NZD/USD pair recovers its recent losses during the early Asian session on Thursday. The pair bounces off the multi-week lows of 0.6088 and rebounds above the 0.6100 mark. The upside of the New Zealand Dollar (NZD) might be limited as investors are concerned about a weak post-Covid recovery in China. NZD/USD currently trades around 0.6127, up 0.28% on the day.
USD/CAD halts its winning streak that began on January 11, trading lower around the significant level at 1.3500 during the Asian session on Thursday. The Canadian Dollar (CAD) gains ground against the US Dollar (USD) on the recovery in the Crude oil prices registered in the previous session. However, West Texas Intermediate (WTI) price trades slightly lower around $72.70 per barrel, at the time of writing.
USD/CHF moves higher on the third consecutive day despite a correction in the US Dollar (USD). The USD/CHF pair trades higher near 0.8650 during the Asian session on Thursday. The Swiss Franc (CHF) receives downward pressure ahead of the Swiss National Bank (SNB) Chairman Thomas Jordan’s speech Thursday at the World Economic Forum (WEF) in Davos.
Oil prices rose on Thursday as OPEC forecast relatively strong growth in global oil demand over the next two years and the market eyed disrupted U.S. oil production amid a cold blast, as well as geopolitical tensions in the Middle East.
Gold price is trying hard to find a floor just above $2,000 early Thursday, despite a broad US Dollar pullback and ongoing Middle East geopolitical tensions. Attention turns toward the mid-tier US economic data and speeches from US Federal Reserve policymakers for fresh trading impetus.
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