Markets await US jobless claims data
On Thursday, global currency markets are focused on the Swiss National Bank’s (SNB) interest rate decision and key labor data from the United States. The US Dollar (USD) recovered from earlier losses against six major currencies after the Federal Reserve delivered a widely expected 25 basis point rate cut and signaled that rates may remain unchanged in the coming months.
The USD showed the strongest performance against the Australian Dollar (+0.68%), while it weakened slightly against the Swiss Franc (-0.06%). The heat map of daily percentage changes highlights mixed performance across major pairs.
The Federal Open Market Committee (FOMC) voted 9–3 to lower the benchmark federal funds rate to a range of 3.5%–3.75%. President of the United States emphasized that the central bank is now “well positioned to wait and see how the economy evolves,” and Fed Chair Jerome Powell noted that a future rate hike is not the base-case scenario.
Fed officials signaled they expect only one more rate cut next year, prompting traders to reassess the pace of monetary easing.
Markets now await the release of the US Balance of Trade, followed by the usual Weekly Initial Jobless Claims and Wholesale Inventories reports during the North American session. Analysts estimate that 220,000 Americans filed new unemployment claims, up from 191,000 in the previous reading.
AUD/USD faces selling pressure after mixed Australian jobs data. The unemployment rate held at 4.3%, but employment change dropped to -21.3K, below expectations.
USD/JPY trades above 156.00, supported by renewed USD demand. Japanese officials said they are closely monitoring the impact of US financial conditions on Japan’s economy.
USD/CHF holds steady near 0.8000 ahead of the SNB’s rate decision, which is expected to maintain its zero interest rate policy.
USD/CAD remains defensive above 1.3800 after the Bank of Canada held rates at 2.25%, citing strong Q3 data.
EUR/USD retreats below 1.1700 after hitting an eight-week high earlier in the Asian session.
GBP/USD softens after nearing the 1.3400 barrier. BoE Deputy Governors Clare Lombardelli and Dave Ramsden supported gradual easing, warning of persistent upside inflation risks.
Gold attracts sellers near the $4,200 level heading into the European session, while silver corrects to around $62.00 after reaching an all-time high of $62.89 earlier in Asian trading.
Global markets remain cautious as traders digest central bank decisions and await fresh labor and trade data from the United States.