The GBP/USD pair hovered above the 1.2300 mark in the latter half of Thursday, as market caution prevented significant gains. The lack of momentum was partly due to weak US Jobless Claims data, which showed a rise to 223,000 from the previous week's 217,000. This data release limited the demand for the US Dollar, while the 10-year US Treasury bond yield remained above 4.6%, maintaining pressure on the market dynamics.
The Federal Reserve's recent decision to cut interest rates by 100 basis points underscores a cautious economic approach. The Fed has signaled that further policy easing will require more evidence of economic weakness and subdued inflation. In the interim, President Trump's policies, characterized by low taxes and minimal regulation, are anticipated to bolster growth prospects.
On Thursday, gold prices continued their downward correction from a multi-month high above $2,760 seen on Wednesday. Trading below $2,740, gold struggled to regain traction, influenced by the persistent strength of the 10-year US Treasury bond yield. The bond yield's resilience has contributed to gold's inability to capitalize on weak USD demand.
Meanwhile, the EUR/USD pair traded sideways at approximately 1.0400 during the American session on Thursday. The pair's stagnation further reflects the cautious market sentiment and limited dollar gains due to the Jobless Claims report.
While these economic indicators paint a complex picture of current market conditions, it is imperative to note that neither the author nor FXStreet are registered investment advisors. They do not provide investment advice, and investors are encouraged to seek professional guidance tailored to their individual financial circumstances.