USD On Track to Record Longest Winning Streak Since March

The USD index is higher for a fifth consecutive session, as US equity futures remain in negative territory. This has helped buoy haven currencies also, resulting in further JPY strength early Thursday.

Markets had a pretty sanguine response to the Norges Bank rate decision despite the Committee making some revisions to inflation, output gap and rate path projections. The Bank see a faster-than-previous pick up in inflation across the short-term and a faster close in the output gap. This resulted in a slightly steeper projected rise in rates across 2022 and into 2023, although the end-2023 projection was lower, which seems to have provided a drag on NOK. The unchanged SNB decision had little impact.

GBP trades well ahead of the appearance of the UK Chancellor in the House of Commons later today. He is expected to unveil a Germany-style wage subsidy scheme to ease the transition off the furlough scheme that's supported the UK economy since the outbreak of the COVID earlier in the year.

Weekly US jobless claims numbers and another 8 Fed speeches are due Thursday. BoE's Bailey is also up.

Turkish and Mexican rate decisions are still due Thursday. Turkey are seen keeping policy unchanged while Mexico are seen trimming rates by 25bps.