Market Drivers: US Session

The US Dollar Index weakened on Thursday as investors digested recent announcements regarding trade policy. Market focus now shifts to key US economic data, including flash Manufacturing and Services PMIs, Existing Home Sales, and the final Michigan Consumer Sentiment.

EUR/USD resumed its uptrend, boosted by a weaker dollar and supported by upcoming economic data releases from Germany and the Eurozone, including HCOB Manufacturing and Services PMIs.

GBP/USD staged a modest recovery, supported by data releases such as the CBI Distributive Trades, GfK’s Consumer Confidence, and the advanced S&P Global Manufacturing and Services PMIs.

USD/JPY continued its decline, with the upcoming Bank of Japan meeting being the key event to watch. Other important Japanese data releases include Inflation Rate and the flash Jibun Bank Manufacturing and Services PMIs. The AUD/USD traded sideways, reacting to the weaker US Dollar.

In commodity markets, WTI crude oil prices extended their bearish trend, approaching the key 200-day SMA. Gold prices were volatile, recouping some of the day’s losses. Silver prices dropped to weekly lows, coinciding with the key 200-day SMA.

Also Read:
S&P 500 Reaches Record High Amid Mixed Earnings and Trump Comments
US Dollar Pressure Before and After Trump’s Davos Remarks
Euro Slides Amid ECB Rate Cut Expectations
Canadian Goods Spending Boosted by Strong Auto Sales in Q4

Could US Dollar Encounter Shifting Sands? Tariffs and the Trump Legacy