Market Drivers – US Session: Focus Shifts Back to US Jobs Data

On Wednesday, the US Dollar edged slightly higher, continuing its rebound from last week’s multi-year lows. This uptick was driven by ongoing concerns over the White House’s trade policies and President Trump’s threats of additional tariffs.

Key Events to Watch on Thursday, July 10:

The US Dollar Index (DXY) hovered near multi-day highs above 97.00, despite a broad decline in US yields. Investors will closely monitor the weekly Initial Jobless Claims data, alongside speeches from Federal Reserve officials Musalem, Waller, and Daly. EUR/USD extended its downward trend, nearing recent lows below 1.1700. In Europe, Germany’s final Inflation Rate data will be released, followed by a speech from ECB’s Cipollone.

Currency Pairs

GBP/USD remained rangebound around 1.3600, reflecting the US Dollar’s lack of clear direction. Traders kept an eye on UK fiscal developments, with the RICS House Price Balance being the sole UK data release. USD/JPY briefly touched a two-week high above 147.00 but later retreated to the low-146.00s under selling pressure. In Japan, Producer Prices and weekly Foreign Bond Investment data will take the spotlight.

AUD/USD saw volatility, testing the critical 0.6500 support before recovering to around 0.6540 by the close of the North American session. Australia’s Westpac Consumer Confidence Index, due on July 15, is the next key release.

Commodities

WTI crude oil prices climbed toward the $69.00 per barrel mark, fueled by tariff concerns, geopolitical tensions, and a slowdown in US production.
Gold prices inched above $3,310 per troy ounce, supported by an indecisive US Dollar and lower US yields. Meanwhile, silver prices fell for the third consecutive day, approaching $36.00 per ounce.