Trading news

Deutsche Bank strategists report that the Federal Reserve (Fed) left rates unchanged but saw four dissents, the most since 1992, including both dovish and hawkish objections.

Mexico Gross Domestic Product (YoY) registered at 0.1%, below expectations (0.8%) in 1Q

South Africa Trade Balance (in Rands) down to 31.87B in March from previous 36.92B

Mexico Gross Domestic Product (QoQ) came in at -0.8% below forecasts (-0.5%) in 1Q

Societe Generale’s Kit Juckes argues that sustained higher Oil prices are likely to support the Dollar and pressure EUR/USD. He recalls that when Brent traded near current levels in early 2022, EUR/USD fell sharply from around 1.13 to 0.95.

The US Dollar (USD) faces intense selling pressure against its major currency peers ahead of the release of the United States (US) preliminary Q1 Gross Domestic Product (GDP) and the Personal Consumption Expenditure Price Index (PCE) data for March, which will be published at 12:30 GMT.

The Euro (EUR) shows marginal losses against the British Pound (GBP) on Thursday but remains trading within the last few days’ range around 0.8660, lacking any clear bias.

USD/JPY drops sharply on Thursday, falling more than 2% as the Japanese Yen (JPY) strengthens broadly following fresh verbal intervention from Tokyo.

BNY’s Bob Savage points out that Gold is gaining alongside Steel as Brent Oil surges to multi‑year highs and Middle East tensions intensify. Elevated energy costs are feeding directly into Euro area and French inflation, while producer prices in several economies show renewed momentum.

GBP/JPY trades around 211.90 on Thursday at the time of writing, down 1.97% on the day, pressured by a combination of Pound Sterling (GBP) weakness and Japanese Yen (JPY) strength.

TD Securities strategists expect the European Central Bank (ECB) to leave the deposit rate at 2.00%, reiterating a meeting-by-meeting approach without pre-committing on future moves. However, recent inflation expectations data raise the risk of a more hawkish press conference.

The Pound Sterling (GBP) faces selling pressure, prima facie, after the Bank of England’s (BoE) monetary policy announcement. As expected, the BoE has left interest rates unchanged at 3.75%, with an 8-1 majority. This is the third straight meeting that the BoE has maintained the status quo.

United Kingdom BoE MPC Vote Rate Unchanged in line with forecasts (8)

United Kingdom BoE MPC Vote Rate Hike meets expectations (1)

United Kingdom BoE Interest Rate Decision meets forecasts (3.75%)

USD/CAD trades around 1.3655 on Thursday, down 0.21% on the day, after stabilizing in the previous day. The pair faces short-term pressure due to a modest pullback in the US Dollar, although downside momentum may remain limited in an uncertain macro environment.

Gold (XAU/USD) is trading higher following a three-day sell-off on Thursday.

Deutsche Bank economists expect the European Central Bank (ECB) to keep the deposit rate at 2% while markets fully price a June hike due to Europe’s energy exposure.

Silver prices (XAG/USD) rose on Thursday, according to FXStreet data. Silver trades at $73.36 per troy ounce, up 2.83% from the $71.34 it cost on Wednesday.

South Africa Producer Price Index (YoY) up to 2.3% in March from previous 1.8%