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The EURUSD weakened towards 1.0700 as the dollar kept the upper hand amid a cautious market mood. Contributing to the cautious mood was the stalling debt ceiling solution which supported the greenback on safe-haven bids. Germany, the biggest economy in Europe, showed rising signs of economic downfall in the Euro area after printing less-than-anticipated GDP data in the first quarter and sliding into a recession. The fibre lost -0.14% in European trade with a focus on 1.0700 and 1.0650 on the slide.
AUDCAD slumped -0.21% after bulls got rejected at 0.8900 amid a weaker Aussie. On Thursday, the Canadian dollar held firmer ground against the AUD despite tumbling crude oil prices. Investors anticipate the RBA to also stop monetary policy tightening after its neighbour, the RBNZ, signalled a stop on Tuesday, putting pressure on the AUD. Later on, Manufacturing sales from Canada will be released. Sellers traded past the 0.8880 level sliding towards 0.8850 and 0.8800.
GBPZAR pocketed +0.45% as traders digested PPI data from South Africa ahead of the SARB monetary policy meeting. The production sector in South Africa contracted more than expected in April with the year-on-year figures dropping to 8.6% from expectations of 9.0% while month-on-month read came in at 0.0% vs 0.5% surveyed.
The South African Reserve Bank is due to meet today and is expected to add 25 basis points to its current 7.75% interest rates. Focusing ahead, the Office for National Statistics in the UK will be reporting retail sales for April. The pair currently faces a hurdle at 24.00 on the upside while bears may need to trade below 23.80 for an extended slide.
European stocks plunged as German economic data weighed sentiment. FTSE100 was down by -0.41% following a 3-day losing streak and bears could target 7550 in the near term. CAC40 lost by -0.28% and downside targets are at 7150, while gains are capped by the 7300 level. DAX sank by -0.54% as bulls extended their move from the 16000 level and the next support level is at the 15680 level.
US stock futures were mixed early Thursday as investors were nervous about a debt default. US500 futures were flat at +0.01% following a bearish break below the 4150 and a further drop below the 4100 could cause short-term targets towards the 4050. US100 rallied by +0.45% towards a yearly high as Nvidia leads an AI-driven rally.
The index is capped by the 14000 psychological level, a break above that resistance, 14250 is the next key barrier. On the downside, 13550 is a critical support level. US30 futures lost by -0.33% extending to their 5-day losses as bears target the 32600 support. On the upside, 33000 is the near-term resistance level.
In commodities, Oil plunged on dollar strength early Thursday. Despite strong demand data indicated by US weekly crude oil stocks that came in at -12.456M vs -0.920M anticipated, oil suffered losses on a stronger dollar. USWTI crude oil stocks dropped by -1.77% from the 74.00 level, while Brent Crude Oil stocks lost -1.73% as bears targeted the 74.80 level, a weekly low.
