EUR/USD recovers from intraday lows on Thursday as traders digest a heavy batch of US economic data. At the time of writing, the pair trades around 1.1362, staging a rebound from thirteen-month lows reached on Wednesday.
ABN AMRO strategist Georgette Boele notes that recent Dollar strength has been driven mainly by a reassessment of the Federal Reserve outlook, with markets now pricing in rate hikes into 2026. She argues this repricing may have gone too far, as ABN AMRO still expects Fed rate cuts around year-end.
MUFG’s Lloyd Chan reports broad Asia FX weakness versus the Dollar, with the Thai Baht underperforming. The Bank of Thailand has kept its policy rate at 1% as growth remains low and uneven and credit conditions soft.
West Texas Intermediate (WTI) US Oil trades around $69.30 at the time of writing, down 0.65% on Thursday. The American benchmark Crude is now posting a fourth consecutive day of losses, weighed down by a convergence of supply-side factors reshaping market expectations.
Russia Central Bank Reserves $: $743.8B vs $729.3B
TD Securities’ Izidor Flajsman highlights that during historical US equity ‘lost decades’, Precious Metals, especially Gold, have delivered strong real returns while broad Commodities were more mixed.
Commerzbank economists Bernd Weidensteiner and Christoph Balz review 250 years of US economic history, highlighting how persistent inflation has eroded the value of the Dollar and how federal debt has surged back to World War II highs.
United States Gross Domestic Product Price Index above expectations (3.5%) in 1Q: Actual (3.6%)
Durable Goods Orders in the United States (US) declined by 4.5%, or $15.6 billion, in May to $332.1 billion, the US Census Bureau reported on Thursday. This reading followed the 8.5% increase recorded in April and came in line with the market expectation.
The final GDP Growth Rate showed the economy expanded by 2.1% in the January-March period, the Commerce Department’s Bureau of Economic Analysis (BEA) reported on Thursday. The reading shows a marked increase from the prior quarter’s 0.5% expansion.
According to a report from the US Department of Labour (DOL) released on Thursday, the number of US citizens submitting new applications for unemployment insurance shrank to 215K for the week ending June 20.
Annual inflation in the United States (US), as measured by the change in the Personal Consumption Expenditures (PCE) Price Index, climbed to 4.1% in May from 3.8% in April, the US Bureau of Economic Analysis (BEA) reported on Thursday. This reading came in line with the market expectation.
