The US Dollar experienced fluctuations in response to various economic data releases on Thursday. Despite US May durable goods orders coming in at +0.1% versus an expected -0.1%, the dollar initially dipped due to higher continuing claims and weaker core durable goods numbers. The weaker trade balance figures also impacted GDP estimates, particularly the Atlanta Fed tracker.
However, the dollar quickly recovered from its initial dip and traded sideways, ultimately ending US trading session around the same levels. This stability occurred despite slightly lower Treasury yields and a successful auction.
In the currency markets, the euro stood out as a strong performer, reaching a high of 1.0726 before retracing some gains. The British Pound also saw a modest increase from a six-week low, ending the day up by 22 pips. The Australian Dollar, on the other hand, remained flat for the third consecutive day as market participants weighed the potential for a rate hike against concerns of a global economic slowdown.
Investors continued to watch the USD/JPY pair closely, with some initial nervousness in Asian trading giving way to a flat finish. While the pair failed to break the previous day’s high, upcoming events such as the PCE report or month-end adjustments could provide further direction. Traders are also cautious about holding long positions over the weekend, considering the possibility of market moves initiated by the Ministry of Finance at the Sunday open.
In the broader markets, gold prices rose by $28 to $2326, while US 10-year yields decreased by 3.1 basis points to 4.28%. WTI crude oil prices also saw an increase of 96 cents to $81.86 per barrel. The S&P 500 index recorded a slight gain of 0.1%, with the EUR leading the gains and the CHF lagging behind.
Overall, the mixed economic data releases led to initial volatility in the US Dollar, but the currency managed to stabilize throughout the trading session. As traders await further developments, especially regarding key currency pairs and market indicators, the focus remains on upcoming reports and potential market movements over the weekend.