The Euro (EUR) is consolidating this week’s advance, supported by widening rate differentials and a neutral ECB outlook, with little reaction to soft euro-area data.

According to a Reuters poll on Thursday, the Federal Reserve (Fed) is widely expected to cut interest rates by 25 Basis points (BPS) to 3.50%-3.75% at its monetary policy meeting on December 10.

The Canadian Dollar (CAD) shows only mild weakness after fresh headlines on a possible USMCA withdrawal, but persistent long-term trade uncertainty continues to cap gains.

Gold (XAU/USD) holds steady on Thursday, moving quietly within the $4,160-$4,260 range as investors adopt a wait-and-see approach ahead of the Federal Reserve’s (Fed) monetary policy meeting next week.

The US Dollar (USD) remains under pressure as soft labor data and speculation about a more dovish Fed tilt weigh on sentiment, even as OIS markets resist pricing deeper cuts.

According to a report from the US Department of Labour (DOL) released on Thursday, the number of US citizens submitting new applications for unemployment insurance went down to 191K for the week ending November 29.

United States Continuing Jobless Claims: 1.939M (November 21) vs previous 1.96M

United States Initial Jobless Claims registered at 191K, below expectations (220K) in November 28

United States Initial Jobless Claims 4-week average down to 214.75K in November 28 from previous 223.75K

The Euro (EUR) weakens against the Japanese Yen (JPY) on Thursday as the Yen outperforms major peers, buoyed by growing speculation that the Bank of Japan (BoJ) could raise interest rates at its upcoming December 19 monetary policy meeting.

EUR/USD keeps trading back and forth on Wednesday, and holds marginal gains on the daily chart at 1.1670, after hitting the highest levels in more than six weeks, at 1.1682.

Russia Central Bank Reserves $ increased to $733.4B from previous $729.1B

The US Dollar is showing moderate gains against its Canadian counterpart on Thursday, trading at 1.3970 after bouncing from five-week lows near 1.3940.

United States Challenger Job Cuts down to 71.321K in November from previous 153.074K

Brazil Gross Domestic Product (YoY) came in at 1.8%, above forecasts (1.7%) in 3Q

Brazil Gross Domestic Product (QoQ) came in at 0.1%, below expectations (0.2%) in 3Q

The US Dollar-Yen recovery attempt seen during Thursday’s early Asian session was capped at 155.50, and the pair resumed its broader bearish trend during the European trading session, breaching Monday’s low of 154.65 to hit fresh two-week lows near 154.50 at the time of writing.

The Pound Sterling (GBP) clings to gains near its over-a-month high around 1.3350 against the US Dollar (USD) during the European trading session on Thursday.

The AUD/USD pair extends its winning streak for the tenth trading day on Thursday.

The Reserve Bank of Australia (RBA) could set the stage for fresh policy guidance next week, potentially signaling the start of an easing cycle, though AUD gains are not guaranteed, BNY's EMEA Macro Strategist Geoff Yu reports.

Gold (XAU/USD) is posting minor losses for the third consecutive day on Thursday, weighed by lower demand for safe havens amid a moderate risk appetite. The precious metal, however, remains supported above the mid-range of the $4,100s with the $4,264 high at a short distance.

USD/CNH bounced from a one-year-plus low as the PBOC set a higher-than-expected fixing, signaling managed support for yuan appreciation. A stronger Yuan could help China pivot towards consumer-led growth, while the USD/CNH downtrend remains intact, BBH FX analysts report.

USD/JPY dipped below 155.00 as strong demand for Japan’s 30-year government bonds pushed yields lower, highlighting investor appetite ahead of the Bank of Japan’s (BoJ) December rate decision, BBH FX analysts report.

GBP/USD remains supported after yesterday’s rally, trading above its 200-day moving average, even as the DMP survey signals moderate wage growth, BBH FX analysts report.

Ireland Gross Domestic Product (YoY) came in at 10.8%, above expectations (10.5%) in 3Q

Ireland Gross Domestic Product (QoQ) came in at -0.3%, below expectations (-0.1%) in 3Q

US Dollar (USD) remains mixed as bets on Fed rate cuts rise amid disappointing ADP payrolls and signs of easing inflation pressures. US labor market shows strain with negative job trends, even as services activity holds up, keeping focus on upcoming job cuts and claims data, BBH FX analysts report.

EUR/USD may rise as markets price in a December Fed rate cut, with structural factors and energy markets providing additional support.

The Indian Rupee (INR) bounces back against the US Dollar (USD) after sliding to record lows near 90.75 during afternoon trading hours in India on Thursday. The Indian currency snaps six-day losing streak against the US Dollar (USD) after dollar sales from multiple foreign banks, Reuters reported.

Spain 10-y Obligaciones Auction fell from previous 3.199% to 1.463%