The US Dollar (USD) has stabilized after experiencing significant losses against its rivals on Wednesday. As the US financial markets will remain closed on Thursday in observance of Independence Day, there will be no high-impact economic data releases. However, investors will closely monitor the United Kingdom exit polls as voters participate in a snap general election called by Prime Minister Rishi Sunak.
Opinion polls have consistently indicated that the main opposition Labour Party is expected to achieve a landslide victory, with Sir Keir Starmer projected to become the new Prime Minister. Exit polls will be announced shortly after voting ends at 22:00 local time (21:00 GMT), with the final results likely confirmed in the early morning hours on Friday.
On Wednesday, the USD faced strong selling pressure due to disappointing macroeconomic data from the US. The ADP reported private sector payroll growth of 150,000, falling short of the expected 160,000. Additionally, the ISM Services PMI dropped to 48.8 in June from 53.8 in May, indicating a contraction in the service sector’s business activity. The USD Index plummeted during the American session, nearing 105.00 before making a technical correction. At press time, the index was fluctuating around 105.30.
The EUR/USD pair reached its highest level in three weeks, surpassing 1.0810 on Wednesday afternoon. It is now in a consolidation phase, trading just below 1.0800 on Thursday morning in Europe.
GBP/USD gained bullish momentum on Wednesday, advancing toward 1.2800. After a correction toward the end of the American session, the pair remains steady at around 1.2750 early Thursday.
Gold prices rose above $2,360 for the first time in two weeks as the benchmark 10-year US Treasury bond yield fell nearly 2% following the weak US data on Wednesday. However, XAU/USD is struggling to maintain its bullish momentum, trading in the mid-$2,350s at the start of the European session.
USD/JPY, after reaching its highest level in nearly four decades near 162.00 on Wednesday, began to decline and was last seen trading below 161.50.
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