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Thursday's session sees improved investor sentiment
Focus on macroeconomic data, including PMI reports and the Bank of England's decision, as well as geopolitical developments.
USD/JPY recovered to approximately 149.80
Futures suggest the Fed's dovish stance might support the bullish rally
Oil prices struggled to maintain the previous day's strong gains
Commodities
Gold prices fluctuated modestly around $2,450 on Thursday, trading just below a two-week high reached during the Asian session. The short-term outlook remains positive for bullish traders, driven by expectations of the Federal Reserve initiating a rate-cutting cycle, which typically supports the non-yielding yellow metal. The Fed's dovish stance on Wednesday reinforced these expectations, leading to a decline in US Treasury bond yields to multi-month lows and keeping the US Dollar under pressure. Additionally, geopolitical tensions in the Middle East bolster the safe-haven appeal of Gold. However, a generally optimistic risk sentiment is limiting the upside for gold.
Oil Market
West Texas Intermediate US crude oil prices hovered around $78.00 on Thursday, struggling to maintain the previous day's strong gains. Traders are waiting for a sustained move above the 200-day Simple Moving Average to signal further potential gains.
Market Sentiment
Thursday's trading session began with improved investor sentiment. Futures contracts suggest that the Fed's dovish stance and positive quarterly results from technology companies will extend the bullish rally into the end of the week. Investors are focusing on macroeconomic data (notably PMI reports and the Bank of England's decision) and geopolitical developments.
USD/JPY
The USD/JPY and yen cross rates experienced significant fluctuations following the Bank of Japan's decision to raise interest rates and signals from the US Federal Reserve about an impending rate cut. The USD/JPY pair dropped to around 148.50 before recovering to approximately 149.80 by the time of writing.
