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BOJ holds steady amid policy uncertainty
Focus remains on Q3 GDP, jobless claims, and natural gas inventory data
Crude Oil (WTI): Prices edged up to $69.50
Gold (XAU/USD): Trading above $2,600
Silver (XAG/USD): Continued its losing streak, dropping to $29.50 per ounce
Asia-Pacific Markets
New Zealand:
The New Zealand economy faced a significant setback as Q3 GDP data revealed a dramatic contraction of 1% quarter-on-quarter, far exceeding the expected decline of 0.4%. On an annual basis, the economy shrank by 1.5%, once again falling short of forecasts. With the Reserve Bank of New Zealand’s next policy meeting slated for February 19, market expectations for a 50-basis-point rate cut have solidified, with further easing likely to follow.
Japan:
The Bank of Japan (BoJ) maintained its ultra-loose monetary policy, leaving interest rates unchanged at 0.25%, aligning with market predictions. The vote saw eight policymakers favoring the hold, while one advocated for a hike. Governor Kazuo Ueda struck a dovish tone, emphasizing that any future rate adjustments hinge on forthcoming wage data and the spring price negotiations at major corporations, which could solidify inflation near the BoJ’s target.
Commodities
Gold (XAU/USD):
Gold prices pulled back slightly after touching intraday highs, trading above the $2,600 mark, up 0.40% during Thursday’s European session. Despite the Federal Reserve's hawkish stance contributing to rising US Treasury yields and bolstering the US Dollar, geopolitical tensions and concerns over global trade continue to support gold as a safe-haven asset. However, traders are awaiting strong momentum to confirm a reversal of gold’s recent decline from its multi-week highs.
Silver (XAG/USD):
Silver extended its downward spiral, marking its sixth consecutive session of losses. The grey metal traded near $29.50 per troy ounce during Asian hours.
Crude Oil (WTI):
WTI crude oil prices saw modest gains, hovering near $69.50 in the Asian session. Lingering concerns about sluggish Chinese demand and a less-than-anticipated decline in US crude oil inventories tempered bullish momentum.
European Markets
Investors are closely monitoring critical developments, including the Bank of England's policy announcement.
US Markets
Key macroeconomic data releases dominate Thursday’s agenda, with the spotlight on Q3 GDP figures, jobless claims, and natural gas inventory reports. The Federal Reserve's indication of a slower pace of rate cuts continues to shape market sentiment, while geopolitical risks remain a notable headwind for riskier assets.
