Canada Core Retail Sales, Eurozone Consumer Confidence, Baker Hughes Rig Count

The EUR/USD pair declined for a second straight trading session on Thursday, slipping 0.53% as investors maintained a preference for the safe-haven US Dollar.

Federal Reserve Chair Jerome Powell sought to downplay economic risks stemming from the US administration’s inconsistent tariff signals. While acknowledging that uncertainty has heightened due to shifting trade policies, Powell emphasized that US economic fundamentals remain solid, albeit moderating from recent highs.

Meanwhile, the Philadelphia Fed’s Manufacturing Index for March eased to 12.5 from February’s reading of 18.1, marking a second consecutive decline but outperforming market expectations of 8.5. US Initial Jobless Claims ticked slightly higher to 223,000, just above the previous week’s 220,000 but below the forecast of 224,000. Additionally, US Existing Home Sales surged past expectations, reaching 4.26 million in February—significantly above January’s revised 4.09 million and exceeding forecasts of 3.95 million.

Gold prices edged slightly lower on Thursday as bullish momentum faded following the Federal Reserve’s latest monetary policy decision and escalating tensions in the Middle East.

Despite the Fed maintaining interest rates at the 4.25%–4.50% range for the second consecutive meeting and signaling a slowdown in quantitative tightening (QT), gold failed to gain traction. Fed policymakers acknowledged that while the labor market remains resilient, inflationary pressures persist.

Meanwhile, geopolitical tensions continued to escalate. In Gaza, Israeli airstrikes resulted in at least 91 Palestinian casualties and dozens of injuries. The ongoing conflict adds another layer of uncertainty for global markets, keeping investors on edge.

Oil prices climbed on Thursday after the United States imposed new Iran-related sanctions, adding to renewed geopolitical tensions in the Middle East. The rise in crude prices counterbalanced the strength of the US dollar, which typically pressures commodities priced in the currency.

The US Treasury Department announced new sanctions targeting entities involved in the Iranian oil trade, including, for the first time, a Chinese independent refinery—known as a “teapot” refinery—and vessels supplying crude to such facilities. China remains the largest importer of Iranian oil, and these private refineries play a key role in processing the supply.

Oil markets remain sensitive to escalating geopolitical risks. Israel launched a new ground operation in Gaza on Wednesday, breaking a nearly two-month ceasefire. Meanwhile, the US continued airstrikes on Houthi targets in Yemen following attacks on ships in the Red Sea.

US main stock indices closed lower on Thursday as investor optimism following the Federal Reserve’s commitment to two rate cuts in 2025 lost momentum. Market sentiment remained fragile amid ongoing concerns over trade policy uncertainty and slowing economic growth.

Despite strong gains in the previous session, all three major Wall Street indices hovered near six-month lows as extended selling pressure continued, driven by uncertainty surrounding former President Donald Trump’s tariff policies.

Fresh labor market data released after the Fed meeting suggested continued strength in the US job market, even as potential headwinds from escalating trade tensions and a push to shrink federal government spending loom.

In corporate news, Apple is reportedly looking to overhaul its AI leadership, with Mike Rockwell, the creator of Vision Pro, expected to take a key role in reshaping Siri. The shift comes amid reports that CEO Tim Cook has lost confidence in AI head John Giannandrea.