Market Overview
- Major currency pairs and Gold experienced significant movements. The USD/JPY pair maintained modest gains for the second consecutive day, trading around 143.65-143.70, as investors awaited the US Nonfarm Payrolls report.
- GBP/USD reached above 1.3600 for the first time in nearly four years, driven by Pound Sterling gains and weakening USD flows.
- The Dow Jones Industrial Average remained steady as investors awaited the Nonfarm Payrolls (NFP) report.
- The Canadian Dollar reached an eight-month high against the US Dollar, but gains may be limited due to concerns about economic downturns.
- WTI crude oil trades around $62.80 on Thursday, up 1.20% but below the session high of $63.30.
Fundamental Analysis
- Japan's Finance Minister Katsunobu Kato deferred the decision on monetary policy to the Bank of Japan in response to the US Treasury Department's urging for monetary tightening.
- Tensions between US President Trump and Elon Musk are escalating, with Musk criticizing Trump's budget bill on social media.
- The Trump administration is preparing for trade talks with China after a productive call between Trump and Chinese President Xi Jinping.
- Fed Bank of Kansas City President Jeff Schmid expressed discomfort with a "look-through" policy approach to tariff-driven price increases.
Technical Analysis
- EUR/USD's uptrend remains intact, but buyers are hesitant to push prices above 1.1450.
- The AUD/JPY pair showed bullish momentum, with higher highs and lows and a bullish engulfing pattern supporting further upside potential.
- NZD/JPY is maintaining a neutral-to-bullish structure, targeting 87.01 and 87.73.
- Gold's technical outlook remains bullish, with support at $3,300 and resistance at $3,350.
Conclusion
- The market outlook remains cautious ahead of the US NFP labor figures set to be released on Friday.
- Potential trading opportunities may arise from price action for EUR/USD, GBP/USD, USD/JPY, and Gold (XAU/USD).
- Investors should keep an eye on major economic events, data releases, and central bank statements.
