NOK On Top With YTD Highs Within Range

Newsflow was relatively few and far between Thursday, with US weekly jobless claims the main release. Both measures beat expectations, but higher revisions to the previous figures resulted in a net neutral impact on markets.

The greenback traded slightly weaker, but price action was generally contained at the USD Index maintained a decent gap with the YTD lows printed last week. The worked in favour of GBP, EUR and CAD, which fared well, resulting in EUR/JPY hitting a new multi-year high at 126.76.

NOK rallied to a new multi-month high against the USD, pressuring USD/NOK to narrow the gap with YTD lows at 8.7548. The moves come despite generally stable oil prices, as markets continue the NOK rally after better-than-expected CPI data on Monday. The Norges Bank decision is due next Thursday.

Chinese industrial production & retail sales data takes focus over the Asia-Pac session Friday, with both measures expected to have improved over the course of July. The equivalent figures from the US then follow, with retail sales seen moderating to +2% from 7.5% in June, while industrial production growth seen slowing to 3.0%. RBA's Lowe and Fed's Kaplan are both scheduled to speak.