Market sentiment was boosted this week amid signs that China and the U.S. have narrowed their differences enough to sign a “phase one” trade deal. China’s Commerce Ministry was out with a statement, saying that the US and China have agreed to cancel existing tariffs in different phases.
GBP/USD edged higher ahead of the Bank of England’s latest policy meeting. The central bank is not expected to make any change in policy.
USD/JPY jumps to session tops, back above 109.00 handle on optimistic trade-related comments from China helped ease the latest uncertainty.
EUR/USD was at 1.1073, with the euro a touch higher against the greenback
In the European session this Thursday, the BOE monetary policy decision accompanied by its minutes and Quarterly Inflation Report will hog the limelight at 12:00 GMT ahead of the BOE Governor Carney’s presser scheduled at 12:30 GMT.
The NA session remains data-light, with the only US Jobless Claims release at 13:30 GMT of note among other minority reports. Also, the speech by the Fed official Kaplan, scheduled at 18:05 GMT, will be closely eyed for fresh dollar trades.
Gold prices traded dropped on Thursday following reports of positive developments in U.S.-China partial trade deal while Oil prices slipped after the Energy Information Administration (EIA) reported that U.S. oil inventories rose much more than market expected last week.