Support
Oil slips ahead of OPEC+ decisions
Market focus is on the US Nonfarm Payrolls report and the OPEC+ meeting, both crucial for shaping economic and production outlooks
EUR/USD: The Euro strengthened, consolidating above the 1.0500 level
GBP/USD: The Pound surged past 1.2700, boosted by improved risk sentiment
USD/JPY: The US Dollar briefly rose above 151.00 against the Japanese Yen
Global markets remained cautious during Thursday's Asian session, with traders balancing economic data, central bank commentary, and geopolitical developments. Mixed signals across asset classes highlighted the challenge of aligning strategies as economic and political narratives evolve. Here's how major markets unfolded:
Currencies
EUR/USD
The Euro extended its recovery, consolidating above the 1.0500 mark as investors weighed upcoming European data releases. Expectations center around the HCOB Construction PMI for Germany and the Eurozone, Factory Orders from Germany, and Retail Sales for the broader Eurozone. Additionally, insights from ECB's Montagner's speech are expected to influence sentiment and potentially confirm the ECB’s tightening stance in a data-driven environment.
GBP/USD
The Pound surged past the 1.2700 barrier amid a rebound in risk appetite and the persistent weakness of the US Dollar. Focus shifts to UK-specific data, including the S&P Global Construction PMI, and remarks by BoE official Greene later today could add further clarity to the central bank’s approach as markets seek direction.
USD/JPY
The US Dollar regained some ground against the Japanese Yen, briefly crossing the 151.00 level. However, the pair lost steam towards the end of the North American session. Traders are closely watching Japan’s weekly Foreign Bond Investment data and commentary from the Bank of Japan’s Nakamura, which could shed light on the central bank's approach to yield curve control and broader monetary policy.
Commodities
Gold prices dipped during the Asian session but remained confined within their recent range. Hawkish remarks from Fed Chair Jerome Powell and other FOMC members reaffirmed expectations of a cautious rate-cut approach, boosting US Treasury yields and limiting gold’s appeal. However, a subdued US Dollar and persistent geopolitical concerns, and uncertainty in US trade policies, provided some support.
Traders are likely to remain cautious ahead of tomorrow's critical US Nonfarm Payrolls report, which could redefine expectations for the Fed's monetary policy trajectory.
Crude Oil
WTI crude prices continued their downward trend, trading below the $68.50 mark as traders took profits ahead of today’s OPEC+ meeting. Expectations suggest the group may delay planned production increases until the second quarter of 2025 to offset weak demand growth, particularly from China.
