The EUR/USD pair saw a resurgence on Thursday, climbing to the 1.0450 level, as the US Dollar faced modest selling pressure. This shift followed the release of US data showing an increase in weekly Initial Jobless Claims to 219,000. The market's attention now turns to upcoming comments from Federal Reserve officials, which are expected to shed light on future monetary policy directions.
Amidst these developments, the US Treasury bond yields experienced a downturn, contributing to a risk-averse market atmosphere. This environment enabled XAU/USD to maintain its position, despite minor sell-offs. Gold prices, hovering near the record-high of $2,950 reached during the European session, reflect investor uncertainty and the ongoing search for safe-haven assets.
In the United States, repo rates continue to offer attractive returns, and there is an expectation that bills will appreciate. The EUR/USD pair's upward momentum is further bolstered by the sustained weakness of the US Dollar, as distinct dynamics unfold across the US, eurozone, and UK economies.
Renewed tariff threats from US President Donald Trump have introduced a broad risk-off mood, which could potentially limit gains for the risk-sensitive Pound Sterling. Despite this, GBP/USD managed to hold its ground above 1.2600 during Thursday's European session. Investors are closely watching US data releases for further market cues.
Speculation surrounds the possibility that the Federal Reserve might implement more significant rate cuts than previously anticipated, drawing parallels with recent monetary policy shifts in the UK. As these economic narratives develop, they continue to shape the market landscape.