USD strengthens modestly – Scotiabank

FXStreet Insights Team FXStreet

The US Dollar (USD) is trading a little higher overall this morning, partially reversing three days of losses following the tariff turmoil at the start of the week, Scotiabank's Chief FX Strategist Shaun Osborne notes.

USD trades mostly firmer in quiet trade

"Markets appear in constructive mood generally, with global stocks are trading in the green for the most part. The FTSE outperformed in anticipation of lower rates at today’s BoE policy decision—which also helps explain the GBP’s overall underperformance on the session. The JPY is resisting the USD’s advance to trade more or less flat on the day."

"BoJ Governor Tamura suggested that the policy rate would need to rise to at least 1% by early 2026— which largely reflects market pricing. USD gains reflect moderately higher yields relative it its major peers on the session so far. Treasury Sec. Bessent said the Trump administration was focused on taming long-term rates, however, suggesting that the president will not be trying to jawbone the Fed into cutting the policy rate."

"The Banxico policy decision at 14ET is expected to result in a 50bps cut, taking the policy rate to 9.50% and the premium over the Fed funds target rate down to 500bps. Markets may be sensitive to guidance as the rate cushion for the MXN is thinning."

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD stays defensive below 1.1900 as USD recovers

EUR/USD trades in negative territory for the third consecutive day, below 1.1900 in the European session on Thursday. A modest rebound in the US Dollar is weighing on the pair, despite an upbeat market mood. Traders keep an eye on the US weekly Initial Jobless Claims data for further trading impetus.

GBP/USD holds above 1.3600 after UK data dump

\GBP/USD moves little while holding above 1.3600 in the European session on Thursday, following the release of the UK Q4 preliminary GDP, which showed a 0.1% growth against a 0.2% increase expected. The UK industrial sector activity deteriorated in Decembert, keeping the downward pressure intact on the Pound Sterling.

Gold sticks to modest intraday losses as reduced March Fed rate cut bets underpin USD

Gold languishes near the lower end of its daily range heading into the European session on Thursday. The precious metal, however, lacks follow-through selling amid mixed cues and currently trades above the $5,050 level, well within striking distance of a nearly two-week low touched the previous day.

Cardano eyes short-term rebound as derivatives sentiment improves

Cardano (ADA) is trading at $0.257 at the time of writing on Thursday, after slipping more than 4% so far this week. Derivatives sentiment improves as ADA’s funding rates turn positive alongside rising long bets among traders.

The market trades the path not the past

The payroll number did not just beat. It reset the tone. 130,000 vs. 65,000 expected, with a 35,000 whisper. 79 of 80 economists leaning the wrong way. Unemployment and underemployment are edging lower. For all the statistical fog around birth-death adjustments and seasonal quirks, the core message was unmistakable. The labour market is not cracking.

Sonic Labs’ vertical integration fuels recovery in S token

Sonic, previously Fantom (FTM), is extending its recovery trade at $0.048 at the time of writing, after rebounding by over 12% the previous day. The recovery thesis’ strengths lie in the optimism surrounding Sonic Labs’ Wednesday announcement to shift to a vertically integrated model, aimed at boosting S token utility.