The greenback remained on the front foot and ended sharply higher against majority of its peers on Thursday, except versus safe-haven Japanese yen after Fed announced the central bank would raise interest rates sooner than expected on Wednesday.
On the data front, Reuters reported initial claims for state unemployment benefits rose 37,000 a seasonally adjusted 412,000 for the week ended June 12, the Labor Department said on Thursday. That was the first increase since late April. Economists polled by Reuters had forecast 359,000 applications for the latest week.
Versus the Japanese yen, although dollar extended Wednesday's rally on Fed's hawkish hold to a 2-1/2 month high of 110.82 at Asian open, price met renewed selling and fell to 110.55 in European morning. The pair then ratcheted lower to session lows of 110.17 in New York due to weakness in U.S. Treasury yields before trading sideways.
Although the single currency recovered from 1.1985 to 1.2006 in Asia, renewed selling interest emerged and knocked price down to a 2-month low of 1.1893 in New York on continued usd's strength following Fed's hawkish hold on Wednesday before rebounding to 1.1922 due to short-covering.
The British pound fell briefly below Wednesday's 1.3983 low to 1.3972 at Asian open. Despite recovering to 1.4009, cable later dropped to a 5-week low of 1.3896 in New York on usd's continued strength before rebounding to 1.3934 due to short-covering as well as cross-buying in sterling.
Data to be released on Friday :
Japan nationwide core CPI, nationwide CPI, Bank of Japan interest rate decision, Germany producer prices, UK retail sales, retail sales ex-fuel, EU current account, and Canada new housing price index.
Trendsetter does not warrant or guarantee the accuracy, timeliness or completeness to its service or information contained therein. Trendsetter does not give, whatsoever, warranties, expressed or implied, to the results to be obtained by using its services or information it provided. Users are trading on their own risk and Trendsetter shall not be responsible under any circumstances for the consequences of such activities. Trendsetter and its affiliates, in no event, be liable to users or any third parties for any consequential damages, however arising, including but not limited to damages caused by negligence whether such damages were foreseen or unforeseen.
Recommended Content
Editors’ Picks
EUR/USD trades weak below 1.0800 amid Good Friday lull, ahead of US PCE
EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair keenly awaits the US PCE inflation data and Fed Chair Powell's speech for fresh hints on next week's price action.
GBP/USD holds steady above 1.2600 as markets stay calm on Good Friday
GBP/USD trades sideways above 1.2600 amid a typical Good Friday trading lull. A broadly firmer US Dollar could keep any upside attempts limited in the pair ahead of the US PCE inflation data and Fed Chair Powell's appearance.
Gold price sits at all-time highs above $2,230, US PCE eyed
Gold price hit all-time highs at $2,236 on Thursday to finish Q1 2024 with a bang. Most major world markets, including the US are closed due to Holy Friday, leaving volatility around Gold price highly subdued. US PCE inflation and Powell are awaited.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.