Thursday brings a more mixed and slightly calmer tone after the strong moves seen earlier in the week.
On the macro side, the calendar delivered a couple of important readings from the US. The PCE price index came in line with expectations at 0.4%, while final GDP printed at 0.5%, below the expected 0.7%. That second number can be seen as mildly negative for the US economy.
After the clear risk-on move from Tuesday into Wednesday, markets are now going through a correction phase. But it’s not uniform across all assets.
On currencies, the standout move is continued weakness in the Japanese yen, which is currently the weakest major currency. This is a notable shift, especially given its typical safe-haven role.
At the same time, the US dollar remains under pressure. The extension of the geopolitical deadline by Donald Trump continues to weigh on the dollar, and that weakness is still visible during the European session. As a result, pairs involving European currencies against the dollar are pushing higher.
Looking at strength elsewhere, we can see gains in the New Zealand dollar, Swiss franc, and Canadian dollar.
On the indices side, the picture is mixed. European indices are moving lower, while US indices are relatively flat, suggesting a pause rather than a full reversal.
Cryptocurrencies are also losing momentum. Both Bitcoin and Ethereum are struggling after their recent gains, which fits the broader theme of consolidation.
So overall, this is more of a correction than a change in trend. The market is digesting recent moves, and now the question is whether momentum will return or if this sideways phase will continue.