Markets Pause as Dollar Firms, Gold Near Highs

Markets pause in Asia as traders await key U.S. data; the dollar stays firm, gold near highs, and oil holds volatile gains.

Asian markets traded cautiously on Thursday as investors locked in profits from recent rallies and positioned for key U.S. macroeconomic releases later in the day. Equity benchmarks across the region stalled, while the Japanese yen and oil prices responded sharply to headline risks.

Traders shifted focus to the European and U.S. sessions, where upcoming U.S. data—GDP, jobless claims, and durable goods orders—will set the tone for global risk sentiment. Markets also look ahead to Friday’s PCE inflation release, a key gauge for the Federal Reserve’s policy direction.

Markets Pause as Dollar Firms, Gold Near Highs

Dollar Index (DXY)

The U.S. dollar held firm, extending its strength against major peers, particularly the yen. Traders priced in about 43 basis points of Fed easing for the rest of 2025, but Fed officials, including Chair Jerome Powell, reinforced a data-dependent stance. Markets expect today’s GDP and durable goods figures to provide clarity on growth momentum.

Bias (24h): Weak Bearish

Gold (XAU)

Gold hovered near record highs at $3,736–3,740 per ounce, buoyed by expectations of further Fed rate cuts, strong ETF inflows, and central bank demand. Traders showed caution ahead of U.S. releases but maintained bullish positioning.

Bias (24h): Strong Bullish

Euro (EUR)

The euro struggled under pressure from weak German business sentiment and political uncertainties in France. While the ECB held rates steady earlier this month, traders continued to price downside risks unless the single currency breaks key resistance levels.

Bias (24h): Weak Bearish

Swiss Franc (CHF)

The Swiss franc strengthened as the SNB left rates unchanged at 0%, reflecting limited policy options but ongoing resilience in a risk-sensitive environment. Market participants expect the franc’s strength to persist amid global uncertainty.

Bias (24h): Medium Bullish

Pound Sterling (GBP)

The pound faced pressure from hawkish BoE commentary, weak growth data, and sticky inflation. Despite modest gains, traders remained cautious ahead of November’s budget.

Bias (24h): Weak Bullish

Canadian Dollar (CAD)

The Canadian dollar slipped to four-month lows against the U.S. dollar, weighed by the BoC’s rate cut to 2.50% and sluggish growth. Market participants flagged ongoing trade tensions and weak demand as key risks.

Bias (24h): Medium Bearish

Oil

Oil prices pulled back from seven-week highs after a sharp midweek rally. Traders balanced supply risks from geopolitical tensions with demand-side concerns and upcoming OPEC+ production increases.

Bias (24h): Weak Bullish

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