TD Securities strategists note the Bank of Canada’s (BoC) April Summary of Deliberations balanced US trade risks with inflation concerns.
The European Central Bank Governing Council member Martins Kazaks said in a presentation during an event on Thursday, the central bank will continue to decide meeting by meeting and on the basis of incoming data.
UOB economists Quek Ser Leang and Lee Sue Ann highlight that AUD/USD extended beyond the expected range to 0.7272, but near-term momentum still looks modest. Intraday, further gains are possible yet seen unlikely to reach 0.7280, with support at 0.7245 and 0.7230.
Silver prices (XAG/USD) fell on Thursday, according to FXStreet data. Silver trades at $87.08 per troy ounce, down 0.49% from the $87.51 it cost on Wednesday.
USD/CAD trades around 1.3705 on Thursday at the time of redaction, virtually unchanged on the day, as markets price in mixed effects following news from the US-China summit.
Brown Brothers Harriman’s (BBH) Elias Haddad notes USD/JPY is trading in a 155.00-160.00 range and expects this to persist until the energy shock fades, despite a constructive stance on Japanese Yen (JPY).
The British Pound (GBP) keeps trading within previous ranges against the Japanese Yen (JPY) on Thursday.
The Indian Rupee (INR) holds onto almost week-long losses against the US Dollar (USD) on Thursday.
The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is remaining in the positive territory for the fourth consecutive day and trading around 98.50 during the European hours on Thursday.
Geoff Yu at BNY argues that the Pound’s (GBP) resilience cannot rely solely on higher rate expectations as United Kingdom (UK) political uncertainty and prospects of fiscal loosening weigh on gilts.
According to a White House official, the meeting between United States (US) President Donald Trump and Chinese leader Xi Jinping was “good” and they both discussed ways to enhance economic cooperation, Reuters reports.
OCBC strategist Christopher Wong highlights that hot United States (US) Consumer Price Index (CPI) and Producer Price Index (PPI) pushed Treasury yields higher, but US Dollar Index (DXY) gains lacked strong follow-through, suggesting much inflation risk is already priced.
NZD/USD moves sideways after three days of losses, trading around 0.5930 during the European hours on Thursday.
The Japanese Yen (JPY) reflects weakness against the US Dollar (USD) during the European trading session on Thursday, with the USD/JPY pair holding onto the two-week high near 158.00. The pair remains firm due to the continued outperformance of the US Dollar.
ING's commodities strategists Warren Patterson and Ewa Manthey report that India, a key Gold consumer, has sharply increased import tariffs on Gold and Silver to support the rupee and foreign exchange reserves as the Iran conflict continues.
The Euro (EUR) is hovering right above 1.1700 against the Dollar (USD) on Thursday, about 0.65% lower so far this week.
MUFG’s Michael Wan notes that a stronger-than-expected United States (US) April Producer Price Index (PPI) print has driven a hawkish repricing of Federal Reserve (Fed) expectations, lifting Treasury yields and supporting the US Dollar (USD).
Dow Jones futures rise 0.30% to near 49,950 during the European hours on Wednesday, ahead of the United States (US) regular opening. Meanwhile, the S&P 500 advance 0.19% to near 7,480, and the Nasdaq 100 futures gain 0.41% toward 29,600.
Rabobank's Global Strategist Michael Every notes Europe’s evolving role in global finance as Euroclear considers accepting China onshore bonds traded in Hong Kong as collateral.
Silver price (XAG/USD) trades calmly near $87 during the European trading session on Thursday. The white metal turns sideways after failing to extend its almost two-month-long advance above $90.00 on Wednesday.
The Euro (EUR) remains practically flat around the 0.8660 area against the British Pound (GBP) on Thursday. UK Gross Domestic Product (GDP) and Manufacturing Production figures beat expectations in March, but the growing political uncertainty is keeping the pair from dropping further.
UOB economists Quek Ser Leang and Lee Sue Ann keep a cautious stance on GBP/USD after the pair briefly broke below 1.3490 to 1.3485 before rebounding. For the next day, they expect consolidation between 1.3500 and 1.3560 as downside momentum eases.
Here is what you need to know on Thursday, May 14:
AUD/USD inches lower after registering modest gains in the previous day, trading around 0.7250 during the Asian hours on Thursday. The technical analysis of the daily chart indicates that the pair is remaining within the ascending channel, suggesting an ongoing bullish bias.
Deutsche Bank analysts highlight an upbeat sentiment in Asian markets, with the KOSPI and Nikkei advancing alongside Nasdaq futures following strong tech-led gains in the US.
ING's commodities strategists Warren Patterson and Ewa Manthey highlights that Copper is trading above $14,000/t and close to record highs as supply-side risks dominate. They stress tight refined markets, low inventories outside the US, and heightened sensitivity to demand.
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $96.70 during the early European trading hours on Thursday.
The Pound (GBP) remains practically flat against the US Dollar (USD) on Thursday, trading at 1.3520 at the moment of writing, and consolidating losses after pulling back from 1.3650 highs earlier in the week.
Michael Wan at MUFG reports that the Japanese Yen (JPY) has borne the brunt of renewed US Dollar (USD) strength following hotter United States (US) inflation data. USD/JPY climbed toward prior highs as markets priced in additional Federal Reserve (Fed) tightening.
Commerzbank strategists note that India has more than doubled tariffs on Gold and Silver to 15% to curb Dollar demand and support INR.
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