RBNZ’s Orr: It will be a brief recession

EUR/USD is trading in a range around 1.1700 in European trading on Thursday. The pair's upside remains capped by a pause in the US Dollar decline, led by the less hawkish Fed outcome. Markets await the release of the US weekly Initial Jobless Claims report for further trading incentives. 

GBP/USD stays defensive below 1.3400 in the European session on Thursday, pressured by a modest US Dollar upswing. Nonetheless, the potential downside might be limited after the US Federal Reserve delivered a rate cut at its December policy meeting. Traders brace for the US weekly Initial Jobless Claims report due later in the day. 

Gold recovers slightly from the vicinity of the $4,200 mark, though it sticks to its negative bias through the first half of the European session. The US Dollar attracts some buyers and recovers a part of the previous day's post-FOMC slump to its lowest level since October 24. This fails to assist the commodity in capitalizing on its modest intraday uptick to the weekly high.

Solana price is trading below $130 on Thursday, after being rejected at the upper boundary of its falling wedge pattern. The broader market weakness following the Federal Reserve’s hawkish rate cut has added to downside momentum.

The Federal Reserve (Fed) went ahead with a 25 basis points rate cut, taking the target range to 3.50–3.75%. But the tone around the decision mattered just as much as the move.

Solana (SOL) price is trading below $130 at the time of writing on Thursday, after being rejected at the upper boundary of its falling wedge pattern. The broader market weakness following the Federal Reserve’s hawkish rate cut has added to downside momentum.