An eventful and busy Thursday´s, characterized by the risk-on market profile amid the latest reports on Brexit progress, China stimulus plans and economic data.
The US dollar was higher against most major pairs on Wednesday while the Japanese yen and the British pound were outliers as they both rose in the session.
The Bank of Japan (BOJ) kept monetary policy unchanged as expected earlier today, and the Bank of England (BoE) is anticipated to do the same, today. Positive Brexit comments today has boosted the Pound. The EUR, GBP traders will remain busy, as the UK docket remains full, with the UK manufacturing PMI report on the cards, followed by the BOE’s Super Thursday events.
The EUR/USD is trading back at 1.1347, after it slipped near 1.1300, as strong US fundamentals have given a leg up to the US dollar. The ADP private payrolls report exceeded expectations ahead of Friday’s release of the U.S. non-farm payrolls (NFP).
The GBP/USD rose in the morning session, ahead of the Bank of England’s (BoE) release of its Inflation report, monetary policy summary, official bank rate and the votes from MPC members at 12:00 GMT. BoE Governor Mark Carney will host a press conference at 12:30GMT.
Despite a better risk environment, both crude benchmarks traded on the front foot, as escalating US-China trade woes and global growth concerns weigh. If Iran and its customers find enough loopholes to avoid US sanctions there could be more supply than originally intended, putting Oil on the back foot.
Gold prices have fell in yesterday’s session, after the US dollar recovered its power with strong fundamentals. Gold had lost some of its lustre as a safe haven as rate differentials pushed investors to seek safety in currencies. However, today Gold prices have broken through the $1,220 barrier, trading now at $1,222.30 per troy ounce, helped by muted Treasury yields and the weaker greenback.