Trading news

EUR/USD edges lower for the third consecutive day during the North American session, down 0.22%, as US economic data showed consumers' resilience. In contrast, jobless benefits data showed a slight increase in the number of Americans filing for jobless benefits.

Dow Jones Industrial Average (DJIA) futures traded above 50,000 in the overnight and premarket sessions on Thursday, more than reversing the modest pullback in the cash index on Wednesday.

USD/CHF advances toward 0.7830 on Thursday, gaining 0.15% on the day at the time of writing, supported by renewed demand for the US Dollar (USD) following a series of solid economic releases in the United States (US).

The AUD/USD pair weakens toward the 0.7220 region on Thursday as the United States (US) Dollar (USD) strengthens after April Retail Sales held up in the United States (US).

United States 4-Week Bill Auction: 3.605% vs previous 3.61%

UOB’s Senior Economist Alvin Liew notes that United States (US) inflation pressures have broadened beyond energy, with April Consumer Price Index (CPI) and Producer Price Index (PPI) both reaccelerating and core measures drifting further above the Federal Reserve’s 2% target.

GBP/USD trades under pressure on Thursday, weighed down by a stronger US Dollar (USD) and rising political uncertainty in the United Kingdom. At the time of writing, the pair is trading around 1.3482, down nearly 0.30% and remaining on the back foot for a third consecutive day.

Silver (XAG/USD) trades lower on Thursday, falling 3.20% to around $84.70 at the time of writing as investors take profits after the metal’s recent rally.

MUFG’s Lee Hardman explains that the Pound (GBP) is softer despite stronger-than-expected United Kingdom (UK) Gross Domestic Product (GDP), as markets anticipate slower growth later in the year due to the energy price shock.

Jeffrey Schmid, President of the Federal Reserve (Fed) Bank of Kansas City, said that Continued inflation is the most pressing risk to the economy.

United States EIA Natural Gas Storage Change meets forecasts (85B) in May 8

TD Securities strategists turn less bearish on the US Dollar (USD) in the near term as the Federal Reserve (Fed) stays on hold and US data, equities and positioning support a range-bound Dollar.

United States Business Inventories registered at 0.9% above expectations (0.8%) in March

Societe Generale strategists note that USD/BRL has extended its broader downtrend after breaking a recent consolidation, with an interim low near 4.88 and a sharp rebound.

NZD/USD falls to around 0.5920 on Thursday at the time of writing, down 0.28% on the day, as the New Zealand Dollar (NZD) remains under pressure against a stronger US Dollar (USd).

BNY’s Geoff Yu highlights that the Japanese Yen (JPY) remains significantly undervalued on a Real Effective Exchange Rate (REER) basis even as Euro (EUR) and US Dollar (USD) valuations have converged.

UOB’s Senior Economist Alvin Liew revises its Federal Reserve (Fed) outlook following hotter United States (US) inflation data.

EUR/GBP trades choppy on Thursday, with the British Pound (GBP) modestly outperforming the Euro (EUR) on the back of resilient UK economic data, while traders also assess growing political noise in the United Kingdom.

Rabobank’s FX Strategy team notes that NOK/SEK has gained around 11% year-to-date as the Norwegian central bank turned more hawkish while the Riksbank stayed on hold. They highlight sticky inflation and Norway’s energy-exporter status as supportive for the Norwegian Krone.

Russia Foreign Trade came in at $13.966B, above forecasts ($11.8B) in March