Danske Research Team notes that Brent crude has dropped back toward USD 72 and near pre-war levels, with Oil pressured by a stronger US Dollar and growth concerns rather than supply alone.
West Texas Intermediate (WTI) oil price loses ground for the fourth consecutive day, trading around $69.20 per barrel during European hours on Thursday. Crude oil prices are facing strong headwinds as market expectations point to a significant surge in supply from the Middle East.
XAG/USD remains weaker for the third consecutive day, trading around $57.40 per troy ounce during the European hours on Thursday. The technical analysis of the daily chart shows that the spot price is moving downwards within the descending channel pattern, indicating a prevailing bearish bias.
ING’s Francesco Pesole says calmer markets are allowing the Euro (EUR) to pause against the strong US Dollar (USD), with AI-related sentiment now the main driver for EUR/USD. He expects that if risk stabilisation continues and equities firm, the pair could slowly return toward 1.1400.
The British Pound (GBP) trims losses against the Japanese Yen (JPY) on Thursday, with the GBP/JPY pair trading around 213.40 after bouncing from lows near 212.50 on Wednesday.
Gold (XAU/USD) enters a bearish consolidation phase during the first half of the European session on Thursday and currently trades around the $4,000 psychological mark.
According to a senior oil ministry official, Iraq will be compelled to consider all available options if its OPEC quota is not significantly increased, Reuters reports.
Commerzbank’s Michael Pfister notes that USD/CAD has surged from below 1.36 to above 1.42 as falling Oil prices and rising Fed hike expectations pressured the Canadian Dollar (CAD).
United Kingdom (UK) Chancellor of the Exchequer Rachel Reeves confirms during the European trading session on Thursday that Greater Manchester Mayor Andy Burnham will be the next Prime Minister (PM), following the resignation of PM Keir Starmer.
US Secretary of State Marco Rubio criticizes Iran for considering a tolling system near the Strait of Hormuz, a critical chokepoint to all 20% of global energy supply, saying, “Hormuz tolling would set an unacceptable precedent” during the European trading session on Thursday.
UBS’s Chief Economist Paul Donovan focuses on United States (US) consumers ahead of May income and spending data, stressing their persistent willingness to spend despite tariff and Oil price shocks.
MUFG analysts stress that USD/JPY is highly sensitive to United States (US) Personal Consumption Expenditures (PCE) Price Index surprises, especially in the current environment of Fed focus on inflation persistence.
