The Greenback is experiencing mostly downward movement, while the US Dollar index remains near one-month lows.
Japanese stocks retreated from their record highs on Thursday, with both the Nikkei 225 and broader Topix indices falling. Similarly, China’s CSI 300 and Hong Kong’s Hang Seng index slipped as investors processed better-than-expected trade data from the mainland. In Europe, the pan-European Stoxx 600 showed little change in early trading, with most sectors trading in negative territory. Wall Street closed higher overnight, with the Dow up approximately 0.2%. The S&P 500 and Nasdaq Composite also posted gains of around 0.5% and 0.6%, respectively, as investors awaited further insights from Fed Chair Jerome Powell's second day of testimony on Capitol Hill.
Gold prices surged to new records on Thursday, marking their seventh consecutive daily rise. Oil prices edged up after US crude inventories rose less than anticipated last week and fuel stocks experienced significant draws, with US West Texas Intermediate crude futures climbing to $79.31 a barrel.
Asia Pacific
The Japanese Yen weakened, testing support around the $148 mark, potentially signaling further decline towards the $146.00-146.70 range.
Meanwhile, the Australian Dollar rose to resistance around the $0.66 level.
Europe
The European Central Bank is convening amid decreasing inflation and a modest recovery in economic activity, yet it is widely expected to maintain rates at a record low of 4%. Market sentiment suggests a potential rate cut in June, while the Euro and the Pound remain under resistance ranges, awaiting fresh market catalysts.
America
Powell reiterated that the central bank is not yet considering lowering interest rates in his prepared remarks for the first day of testimony on Capitol Hill. While his comments did not introduce new insights on monetary policy, they emphasized officials' continued vigilance against inflation risks.
Investors closely monitor Powell's remarks for further clarity on the central bank's timing for potential rate adjustments, with anticipation building for the second day of his testimony.