The US Dollar (USD) remains firm against major peers in the latter part of the week, supported by stronger-than-expected January labor market data. On Thursday, market participants will focus on weekly Initial Jobless Claims and January Existing Home Sales figures from the US economic calendar.
According to data released Wednesday by the US Bureau of Labor Statistics, Nonfarm Payrolls increased by 130,000 in January, following December’s upwardly revised gain of 48,000 (from 50,000) and surpassing market forecasts of 70,000. The report also showed the Unemployment Rate easing to 4.3% from 4.4%, while the Labor Force Participation Rate edged up to 62.5% from 62.4%. In response, the USD Index strengthened, climbing toward the 97.30 area. Early Thursday, the index enters a consolidation phase, moving sideways near 97. Meanwhile, US equity futures advance between 0.2% and 0.3%, reflecting an improved risk appetite.
In the UK, data released Thursday indicated that the economy expanded by 0.1% quarter-over-quarter in the three months to December 2025, matching Q3 growth. On an annual basis, GDP rose 1.0% in Q4, below the expected 1.2% and down from the prior quarter’s revised 1.2% (previously 1.3%). Additionally, December Industrial Production and Manufacturing Output declined by 0.9% and 0.5% month-over-month, respectively, both falling short of forecasts. GBP/USD showed little immediate reaction, trading flat near 1.3630.
EUR/USD trades sideways around 1.1870 after ending Wednesday in negative territory. Several European Central Bank (ECB) officials are scheduled to speak later in the day.
USD/JPY continued its weekly decline despite overall USD strength, marking its third consecutive daily loss on Wednesday. The pair extends its drop early Thursday, trading at a two-week low below 153.00.
In Australia, RBA Assistant Governor Sarah Hunter stated Thursday that she expects labor market conditions to remain tight and inflation to stay above target for an extended period. She added that capacity constraints in the economy and labor market will be closely monitored. AUD/USD surged over 0.7% on Wednesday, reaching a fresh three-year high near 0.7150. Although the pair is correcting lower on Thursday, it remains comfortably above 0.7100 in European trading.
Gold struggles to build further upside momentum but holds above the $5,000 level after posting moderate gains the previous session.
Sources: Eren Sengezer
THE ETERNAL SOVEREIGN 
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