The Mexican Peso holds firm versus the Greenback as Banxico adopted a cautious stance regarding monetary policy, while jobs data in the US revealed that the labour market is stable. The USD/MXN pair exchanges hands at 16.95, virtually unchanged.
DBS strategist Chang Wei Liang reports that South Korean Won (KRW) strength has resumed, with USD/KRW dropping to the mid-1380s even as KOSPI fell nearly 6% on semiconductor-led losses.
The US Dollar Index (DXY) is hovering near 98.90, still short of 100.00, but grinding higher on Thursday. Hawkish commentary from Federal Reserve Bank of St.
The Dollar Index has spent Thursday building a floor just above 98.50 and defending it with everything the calendar had to offer, and the entire effort is worth roughly a tenth of a point.
OCBC strategists Sim Moh Siong and Christopher Wong note that Indonesian Rupiah (IDR) should find some relief from a softer Dollar and lower long-end US yields, with BI keeping its policy rate at 5.75% and focusing on currency stability.
United Overseas Bank’s Quek Ser Leang and Lee Sue Ann note that USD/SGD extended its overnight slide as the US Dollar (USD) sell-off pushed the pair back toward the 1.27 area.
Silver (XAG/USD) price extended its gains on Thursday, up more than 1.70%, even as US yields recovered some ground following the US Treasury bond buyback announcement. The XAG/USD pair trades at $68.18 at the time of writing, its highest level since June 18.
USD/JPY rebounds on Thursday, recovering most of the previous day’s losses as the US Dollar (USD) stages a modest recovery after falling to a three-month low. At the time of writing, USD/JPY trades around 159.05, up roughly 0.55% on the day.
Gold (XAU/USD) price retreats about 0.33% on Thursday as US Treasury yields trim some of their Wednesday losses, weighing on bullion, which is also pressured by the recovery of the US Dollar. The XAU/USD pair trades at $4,509, after hitting a daily high of $4,540.
The minutes of the Bank of Mexico (Banxico) August meeting showed that the central bank is expected to hold rates steady for some time, despite the resumption of the disinflation process.
NZD/USD advances for the second consecutive day on Thursday, trading around 0.5940 at the time of writing, up 0.12% on the day.
AUD/USD is trading in the 0.7100 neighborhood at the time of writing on Thursday, holding close to multi-week highs after a steady climb off its earlier lows. The pair is marginally weaker on the day as the US Dollar (USD) regains a little ground, but the broader uptrend remains intact.
The Dow Jones Industrial Average trades near 53,050, more than 400 points lower on the session, after two of the strongest American data points of the month arrived in the same 12:30 GMT block and were sold on delivery.
The Pound Sterling (GBP) advances on Thursday during the North American session, up 0.25% after US economic data showed that the labor market remains solid, despite a weaker Nonfarm Payrolls in July.
Federal Reserve Bank of St. Louis President Alberto Musalem is crossing the wires with remarks on the economy and the monetary policy outlook, speaking in an interview with CNBC on Thursday.
Scotiabank strategists Shaun Osborne and Eric Theoret note the US Dollar (USD) is extending losses to its weakest level since mid-June as markets react to the US Treasury’s decision to double bond buybacks.
USD/CHF regains ground on Thursday as the US Dollar (USD) stabilises following the previous day’s broad weakness, which pushed the pair below the 0.8000 psychological mark and to its lowest level since June 17, weakening the near-term bullish structure.
United States (US) Treasury Secretary Scott Bessent said on Thursday that the Treasury could increase bond buybacks beyond $4 billion, partly to signal that current yields do not reflect underlying economic fundamentals. He stressed that interest rates have nothing to do with the buyback decision.
West Texas Intermediate (WTI) US Oil rises 1.89% on Thursday and trades around $85.85 at the time of writing, after reaching a fresh three-week high at $87.38 earlier in the day.
DBS Group Research economist Radhika Rao notes Bank Indonesia (BI) kept its policy rate at 5.75% with Acting Governor Destry maintaining a neutral bias while flagging global risks. A strong domestic growth print and Indonesian Rupiah (IDR) stability underpin the decision.
USD/CAD remains under pressure on Thursday even as the US Dollar (USD) stages a modest recovery following the previous day’s sharp selloff. Higher Oil prices support the commodity-linked Canadian Dollar (CAD), keeping the pair near a three-month low.
Scotiabank strategists Shaun Osborne and Eric Theoret note that GBP/USD gains into the mid-1.36s are driven more by US Dollar (USD) weakness than intrinsic British Pound (GBP) strength, though United Kingdom (UK) survey data show improving manufacturing orders and pricing power.
EUR/GBP trades near the 0.8560s zone, having drifted steadily lower from near the 0.8585 area after failing to hold its push higher. The cross is down 0.15% in Thursday's American session with traders squaring up ahead of a data-heavy Friday.
Lloyd Chan at MUFG highlights that the Korean Won has outperformed regional peers, helped by a softer Dollar and a resilient semiconductor and AI investment cycle supporting exports and inflows.
BNY Mellon’s Geoff Yu reports the Swedish Riksbank left its policy rate at 1.75%, judging the stance well balanced amid stronger growth and inflation but a softer labor market. Underlying inflation is near 2% and summer readings beat forecasts.
Scotiabank strategists Shaun Osborne and Eric Theoret report that EUR/USD gains are being driven mainly by broad US Dollar (USD) weakness, with front-end spreads narrowing since late June and supporting Euro (EUR) fundamentals.
Commerzbank’s Moses Lim highlights that Bank Indonesia left the BI Rate at 5.75%, balancing inflation, growth and IDR stability after earlier hikes. BI has expanded hedging incentives and CNY clearing to support inflows and FX stability, while keeping SRBI yields from rising further.
Ryan McKay and Bart Melek at TD Securities say Gold and broader precious metals are likely to remain comfortable in a higher trading range.
Scotiabank strategists Shaun Osborne and Eric Theoret highlight that USD/CAD is under pressure as broad US Dollar (USD) weakness combines with tentative progress on a US-Canada trade deal.
Gold (XAU/USD) trims its earlier intraday losses during American trading hours on Thursday and climbs back above the $4,500 mark, even as US Treasury yields rebound and the US Dollar (USD) stabilizes following the previous day’s sharp pullback.
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