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Stay ahead of the game with today’s market insights brought to you by the expert team at vtmarkets.com.
US stocks rebounded on Thursday, ending a two-day losing streak, following Federal Reserve Bank of Atlanta President Raphael Bostic’s announcement that the central bank may pause rate hikes this summer. US Treasury bond yields had earlier risen to multi-month highs amid inflation fears, supporting the US dollar. However, other central bank officials have reiterated hawkish rhetoric, with Boston Fed President Susan Collins stating that more rate hikes are needed to control inflation, and economic data indicates a more restrictive monetary policy. Initial Jobless Claims declined to 190K, and Unit Labor Cost for Q4 was revised higher from 1.6% to 3.2%.
Both the S&P 500 and Dow Jones Industrial Average rebounded higher on Thursday, with the S&P 500 jumping the most in over two weeks and rising by 0.8%, while the Dow Jones Industrial Average rose by 1.1%. Nine out of eleven sectors in the S&P 500 stayed in positive territory, with the Utilities and Information Technology sectors being the best performers, rising 1.82% and 1.26%, respectively. Meanwhile, the Nasdaq 100 climbed higher with a 0.9% gain, and the MSCI World index remained little changed for the day.
Main Pairs Movement
The US dollar advanced higher on Thursday, erasing its recent losses and extending the intraday rally to a daily high above the 105.10 mark on the back of US economic data and higher US yields. The escalating fears of inflation and higher rates from major central banks allowed the US Dollar to post the biggest daily jump since early February. However, late Thursday’s comments from Bostic joined the cautious mood and let the greenback hold onto its gains.
GBP/USD dropped lower on Thursday with a 0.69% loss after the cable extended its intraday slide and touched a daily low near the 1.1930 mark in the late US session after US economic data warranted further tightening by the US Federal Reserve. On the UK front, investors are anticipating a pause or a deceleration in the pace of interest rate hiking by the Bank of England, which is expected to dump the Cable. Meanwhile, EUR/USD also witnessed selling momentum and touched a daily low below the 1.0580 mark, down almost 0.67% for the day.
Gold retreated slightly with a 0.05% loss for the day after halting its recent surge and falling from the weekly high above the $1842 level during the US trading session, as US Treasury bond yields gathered strength and exerted bearish pressure on the yellow metal. Meanwhile, WTI Oil climbed higher with a 0.60% daily gain.
Stay ahead of the game with today’s market insights brought to you by the expert team at vtmarkets.com.
Economic Data
| Currency | Data | Time (GMT + 8) | Forecast |
| GBP | Composite PMI (Feb) | 17:30 | 53 |
| GBP | Services PMI (Feb) | 17:30 | 53.3 |
| USD | ISM Non-Manufacturing PMI (Feb) | 23:00 | 54.5 |
