Major currency pairs are showing limited movement early Thursday as traders await the next set of economic data to provide fresh direction. The US economic calendar will feature the weekly Initial Jobless Claims report, while the US Treasury holds its 10-year Treasury Inflation-Protected Securities (TIPS) auction. Additionally, the European Commission will release preliminary Consumer Confidence data for January, adding to the market’s anticipation of further economic indicators.
The US Dollar (USD) Index struggled to gain momentum on Wednesday, with a positive risk sentiment making it harder for the greenback to find demand. US stock index futures are trading marginally lower early Thursday, signaling a cautious market outlook, while the USD Index remains steady above the 108.00 mark. Late Wednesday, US President Donald Trump announced plans to impose high sanctions on Russia and tariffs on imports unless progress is made in ending the war in Ukraine, adding further uncertainty to global markets.
In the currency space, USD/CAD closed positively and extended its move towards the 1.4400 level during the Asian trading session on Thursday. Later today, Statistics Canada will release its Retail Sales figures for November, which could provide further insights into the Canadian economy.
Japanese trade data showed that exports rose by 2.8% year-over-year in December, while imports increased by 1.8%. Ahead of the highly anticipated Bank of Japan (BoJ) policy decision on Friday, where a 25 basis point rate hike is expected, USD/JPY is trading within a tight range around 156.50.
The EUR/USD pair remains range-bound, slightly above 1.0400, after closing slightly lower on Wednesday. Meanwhile, GBP/USD corrected lower on Wednesday but found support above 1.2300, stabilizing at around 1.2315 in early Thursday trading.
Gold (XAU/USD) saw its third consecutive day of gains on Wednesday, reaching its highest level since late October above $2,760. Early Thursday, gold prices remain in a consolidation phase, holding just above $2,750, as market participants await further catalysts for direction.
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