West Texas Intermediate (WTI) spent Thursday doing its now-familiar trick of grabbing a geopolitical bid and then quietly handing most of it back.
Silver (XAG/USD) enjoyed a rare green session on Thursday, and reading much into it would be a mistake. The metal bounced off a session low near 56.35, briefly spiking close to 59.00 just after the US data hit the wires, before fading back to around 58.00, up roughly 0.8% on the day.
The Australian Dollar spent Thursday doing the one thing it was not supposed to do after a strong labour report, which is nothing.
The US Dollar Index (DXY) lost momentum on Thursday, retreating toward the 101.40 area after a fresh batch of United States (US) economic data showed sticky inflation, stronger growth, and a resilient labor market.
The US Dollar Index (DXY) had every excuse to extend on Thursday and declined instead. A firm batch of US data crossed the wires, yet the US Dollar eased off the top of its multi-month rally, slipping back toward 101.45 after probing close to 101.75 earlier in the session.
Federal Reserve (Fed) Bank of New York President John Williams said in a speech released by text on Thursday that monetary policy remains “well positioned” for the current economy, while warning that inflation may take longer to return to the Fed’s 2% target than previously expected.
Federal Reserve (Fed) Bank of Chicago President Austan Goolsbee said on Thursday that inflation remains the central challenge for policymakers, warning that price pressure is still moving in the wrong direction despite some signs of improvement in services.
United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann highlight a sharp USD/CNH spike to 6.8195, now seen consolidating between 6.8030 and 6.8185 on an intraday basis after an overdone rise.
The Bank of Mexico (Banxico) held its main reference rate unchanged at 6.50% in a unanimous decision on Thursday, as expected. Based on its economic projections, Banxico noted that the balance of inflation risks is tilted to the upside.
DBS Group Research economist Chua Han Teng expects the Bank of Thailand (BoT) to keep its policy rate unchanged at 1.00% through 2026, after a second consecutive on-hold decision.
The USD/CHF pair stumbles on Thursday, losing 0.34% during the North American session, as the Greenback’s six-day rally stalls amid falling US Treasury yields, despite a red-hot US Core PCE inflation reading.
Mexico Banxico Interest Rate Decision in line with forecasts (6.5%)
