U.S. Revised UoM Consumer Sentiment and Inflation Expectations, Canada Retail Sales

The Euro gained traction on Thursday, with the EUR/USD pair rising 0.38% as the U.S. Dollar came under renewed selling pressure. The Greenback retreated notably amid escalating concerns over U.S.-China trade tensions, dragging the Dollar Index (DXY) back toward the low-99.00s.

Earlier in the week, market sentiment had found temporary support following indications from the White House that it may consider easing tariffs on Chinese imports. However, investor optimism faded as doubts emerged over the actual progress of trade talks. Despite diplomatic gestures, scepticism persists about the likelihood of a near-term resolution.

Adding to the EUR/USD movement, diverging policy paths between the Federal Reserve and the European Central Bank (ECB) continue to shape the pair’s direction. While the Fed maintains a hawkish stance, the ECB has already initiated a 25 basis-point rate cut and opened the door for further easing—creating a mixed outlook that traders are closely watching.

On the data front, U.S. economic indicators delivered a mixed signal. Durable Goods Orders for March posted a strong 9.2% gain—sharply beating expectations of a 2.0% rise and signaling robust business spending. However, labor market data was less encouraging. Initial Jobless Claims ticked up to 222,000 for the week ending April 19, slightly above forecasts and last week’s revised total of 216,000.

Gold prices surged on Thursday, snapping a two-day losing streak as renewed U.S.-China trade tensions and falling U.S. Treasury yields reignited demand for safe-haven assets.

The renewed uptick in bullion came despite U.S. President Donald Trump signaling a softer stance on maintaining 145% tariffs on Chinese imports. While markets initially took comfort in Trump’s willingness to engage in dialogue, sentiment shifted after China responded firmly, demanding the removal of all “unilateral” U.S. tariffs and clarifying that no formal trade talks had taken place.

On the macroeconomic front, U.S. Initial Jobless Claims came in line with expectations, while Durable Goods Orders surged in March, largely driven by a spike in aircraft purchases. However, investor focus remained on comments from several Federal Reserve officials, which injected fresh uncertainty into the policy outlook.

With gold benefiting from both geopolitical unease and a potential pivot in U.S. monetary policy, market participants will be watching closely for any shifts in inflation data, labor market trends, and Fed communication in the coming weeks.

Oil prices advanced modestly on Thursday as investors assessed a combination of macroeconomic signals, geopolitical developments, and renewed speculation around potential changes in OPEC+ production policy.

The U.S. dollar broadly retreated on Thursday, offering support to dollar-denominated commodities like oil. The pullback came as investor optimism over U.S.-China trade talks faded amid mixed messaging from Washington and Beijing.

Federal Reserve officials, speaking in televised interviews, indicated no immediate plans to shift monetary policy, emphasizing the need for more data to assess the full impact of tariffs.

Meanwhile, oil traders are also closely monitoring potential changes to global supply dynamics. A Reuters report on Wednesday revealed that some OPEC+ members have proposed accelerating output increases for a second consecutive month in June, raising questions about how much spare capacity the group is willing to deploy.

Iranian Foreign Minister Abbas Araqchi said he is prepared to travel to Europe to discuss Tehran's nuclear program. European powers, including France, have signaled a willingness to engage—potentially paving the way for sanctions relief on Iranian oil exports. Iran remains OPEC’s third-largest producer, trailing only Saudi Arabia and Iraq.

With shifting policy signals, evolving geopolitical risks, and a changing demand outlook, oil markets are likely to remain volatile as traders digest both economic data and diplomatic developments.

U.S. stocks surged on Thursday, marking a third consecutive day of gains as technology shares led the charge amid easing U.S.-China trade rhetoric and a flurry of mixed corporate earnings. All three major indexes closed sharply higher, with the US Tech 100 outperforming thanks to strength in artificial intelligence-related megacaps.

Sentiment was further buoyed by signs of potential de-escalation in the U.S.-China trade dispute. Beijing reiterated its call for the cancellation of U.S. tariffs on Chinese goods, following comments from U.S. Treasury Secretary Scott Bessent indicating the White House may be open to softening its stance.

As the Q1 earnings season gains momentum, several high-profile companies flagged trade-related uncertainty as a drag on consumer sentiment.

On the economic front, durable goods orders for March came in well above expectations, while jobless claims remained relatively stable, reinforcing views that the U.S. economy continues to show resilience despite external headwinds.