Analysts at Westpac Banking Corporation explained that there were only modest movements in most asset classes overnight and the news flow light.
Key Quotes:
"US equities nudged higher (S&P500 up 0.2%), US bond yields ranged, the US$ was modestly higher on Powell comments and major currencies round-tripped."
"The US dollar index made some gains on upbeat Powell comments, though gave up much of them into the end of the session."
"EUR did the opposite, falling from 1.1660 to 1602 during the London morning and then bouncing back again."
"USD/JPY fell from 113.10 to 112.70."
"AUD fell from 0.7380 to 0.7343 before rebounding to 0.7407."
"NZD similarly traced a 0.6760-0.6740-0.6805 path."
"AUD/NZD was stuck in a 1.0860-1.0900 range."
"The GBP was hit by softer than expected core CPI, hitting a 10 month low at 1.3010."
"US housing starts posted a steep 12.3% decline in June, well below consensus. The fall was relatively broad-based, with weakness reported in both units and single family homes and across most US districts."
"Housing starts are notoriously volatile and June weakness could be revised away, but if not it could be a warning that less favourable tax treatment for housing and higher mortgage rates are beginning to bite."
"Ten of twelve US Fed districts reported moderate or modest growth in the Fed’s Beige Book with worker shortages and tariff concerns more prominent issues."
"Eurozone June CPI was expected to be a rubber stamping of the initial 1.0%y/y for core inflation, however, softer French CPI and some downside rounding of data meant that the core level slipped to +0.9%y/y (headline inflation remained at 2.0%y/y). Although not a game-changer, together with the release of May construction activity, which was also revised lower, the data still suggest a sluggish 2Q."
"UK June inflation data surprised on the downside, coming in flat on the month, vs estimates of +0.2%m/m. Core inflation was at 1.9%y/y (est. 2.1%y/y), headline 2.4%y/y (est. 2.6%). The ONS cited promotions on clothing and leisure activities as offsets to rises (such as fuel). Although it may reduce current pricing for a hike at the 2 August MPC meeting, the likelihood remains high (around 75%) given recent BoE comments."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD holds above 0.6500 in thin trading
The Australian Dollar managed to recover ground against its American rival after AUD/USD fell to 0.6484. The upbeat tone of Wall Street underpinned the Aussie despite broad US Dollar strength and tepid Australian data.
EUR/USD comfortable below 1.0800 lower lows at sight
The EUR/USD pair lost ground on Thursday and settled near a fresh March low of 1.0774. Strong US data and hawkish Fed speakers comments lead the way ahead of the release of the US PCE Price Index on Friday.
Gold pulls away from daily highs, holds above $2,200
Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Thursday. The benchmark 10-year US Treasury bond yield stays near 4.2% after upbeat US data and makes it difficult for XAU/USD to gather further bullish momentum.
Google starts indexing Bitcoin addresses
Bitcoin address data is live on Google search results after users realized on Thursday that the tech giant started indexing Bitcoin blockchain data. However, mixed reactions have followed the tech giant's reversed stance on the cryptocurrency.
A Hollywood ending for fourth quarter GDP
The latest revisions put Q4 GDP at 3.4%, the second fastest quarterly growth rate in two years. Much of the upside was attributable to stronger consumer spending, yet fresh profits data affirmed it was a good quarter for the bottom line as well with profits up by the most since the Q2-2022.