Market Roundup
• US Initial Jobless Claims 225K, 214K forecast, 212K previous
•US Nonfarm Productivity (QoQ) (Q1) 0.3%, 0.8% forecast, 1.8% previous
•US Unit Labor Costs (QoQ) (Q1) 1.8%, 2.3% forecast, 4.4% previous
•US Continuing Jobless Claims 1,777K, 1,780K forecast, 1,785K previous
•US Jobless Claims 4-Week Avg. 214.75K, 208.25K previous
•US 4-Week Bill Auction 3.615%, 3.630% previous
•US 8-Week Bill Auction 3.610%, 3.615% previous
•Japan Household Spending (MoM) (Apr) 1.6%, 0.8% forecast, -1.3% previous
•Japan Household Spending (YoY) (Apr) -0.5%, -1.5% forecast, -2.9% previous
•Japan Overall Wage Income of Employees (Apr) 3.5%, 3.1% forecast, 3.1% previous
•Japan Overtime Pay (YoY) (Apr) 4.20%, 3.20% forecast, 3.10% previous
Looking Ahead Economic Data (GMT)
• 06:00 Japan Leading Index (MoM) (Apr) 0.8% previous
• 06:00 Japan Coincident Indicator (MoM) (Apr) -1.7% forecast, 0.2% previous
• 06:00 Japan Leading Index (Apr) 114.4 forecast, 114.0 previous
Looking Ahead Events And Other Releases (GMT)
• No Events Ahead
Currency Summaries
EUR/USD : The euro traded in tight range on Thursday as investors assessed whether developments in the Middle East would lead towards a peace deal to end the months-long conflict. Israel and Lebanon agreed to implement a ceasefire to end hostilities, the Trump administration said on Wednesday, boosting hopes for a broader deal to end the Iran conflict.The Republican-led U.S. House of Representatives approved a resolution to block U.S. President Donald Trump from continuing the war against Iran, reflecting growing concern among members of his party about the three-month-old conflict.Oil prices eased on Thursday, as the ceasefire between Lebanon and Israel boosted hopes of a U.S.-Iran peace deal.Immediate resistance can be seen at 1.1648(May 25th high), an upside break can trigger rise towards 1.1693(SMA 20).On the downside, immediate support is seen at 1.1577(23.6%fib), a break below could take the pair towards 1.1561(Lower BB).
GBP/USD: The pound traded in narrow range on Thursday as markets remained focused on the uncertain outcome of U.S.-Iran peace talks.Israel and Lebanon agreed to implement a ceasefire to end hostilities, the Trump administration said on Wednesday, bolstering hopes of a broader deal.But that came after Iran earlier struck Kuwait's airport and the U.S. military carried out strikes near the Strait of Hormuz, underscoring how shaky the weeks-long U.S.-Iran ceasefire has become.Britain's currency has been pulled in different directions since the start of the Iran war and is down around 0.5% since February 27 against the dollar but up roughly 1.5% versus the euro.Immediate resistance can be seen at 1.3463(SMA 20), an upside break can trigger rise towards 1.3526(50%fib).On the downside, immediate support is seen at 1.3416(Daily low), a break below could take the pair towards1.3382(61.8%fib).
USD/CAD: The Canadian dollar steadied near an earlier eight-week low against its U.S. counterpart on Thursday as the price of oil fell and ahead of domestic jobs data that could help guide expectations for an upcoming Bank of Canada interest rate decision.Domestic employment data, due on Friday, is expected to show the economy adding 10,000 jobs last month and the unemployment rate holding steady at 6.9%, its highest level since October.Investors expect the Bank of Canada to leave its benchmark interest rate on hold at 2.25% for a fifth straight policy decision next Wednesday, swap market data showed.The price of oil , one of Canada's major exports, was trading 3.8% lower at $92.41 a barrel on investor hopes for an end to the U.S.-Israeli war with Iran that could lead to a reopening of the Strait of Hormuz.Immediate resistance can be seen at 1.3898(38.2% fib), an upside break can trigger rise towards 1.3956(Higher BB).On the downside, immediate support is seen at 1.3836(50% fib), a break below could take the pair towards 1.3779(61.8% fib).
USD/JPY: The dollar traded in narrow range on Thursday as markets were alert to possible intervention as the Japanese yen touched the key 160 level. The 160 level is widely seen in markets as a line in the sand for potential official intervention.The latest decline prompted fresh warnings from officials, with Prime Minister Sane Takaichi reiterating that the government is prepared to act against excessive exchange-rate volatility if needed.Meanwhile, Bank of Japan Governor Kazuo Ueda said the central bank would consider the costs and benefits of raising interest rates if inflation risks become more significant than the downside risks to economic growth . The Japanese yen fetched 159.98 per dollar, after hitting the critical 160-per-dollar mark on Wednesday for the first time since April 30. Immediate resistance can be seen at 160.00(Psychological level)an upside break can trigger rise towards 160.95(Higher BB) .On the downside, immediate support is seen at 159.18(38.2%fib) a break below could take the pair towards 157.62(50%fib).
Equities Recap
European equities advanced on Thursday as oil prices declined, but uncertainty over a lasting Middle East peace deal kept investors cautious.
UK's benchmark FTSE 100 closed up by 0.27 percent, Germany's Dax ended up by 0.60 percent, France’s CAC finished the day up by 1.15 percent.
Wall Street advanced on Thursday as optimism over progress toward ending the Iran conflict supported sentiment, while a sharp selloff in chip stocks following disappointing Broadcom results dragged the Nasdaq lower.
Dow Jones closed up by 1.73% percent, S&P 500 closed up by 0.41 % percent, Nasdaq settled down by 0.09% percent.
Commodities Recap
Oil settled roughly 3% lower on Thursday as a ceasefire between Israel and Lebanon fueled hopes of de-escalation in the U.S.–Israeli conflict with Iran and a potential reopening of the Strait of Hormuz.
Brent futures settled down $2.78, or 2.84%, at $95.03, while U.S. West Texas Intermediate crude settled down $2.98, or 3.1%, at $93.04.
Gold prices gained more than 1% on Thursday, supported by a weaker dollar and falling bond yields as optimism grew over a potential resolution to the Iran conflict, while easing oil prices added further pressure.
Spot gold was up 1% at $4,476.85 per ounce as of 1:41 p.m. EDT (1741 GMT).U.S. gold futures for August delivery settled 0.9% higher to $4,505.
