USD flat ahead of US retail sales and jobless claims data

The US dollar traded little changed on Thursday as investors awaited key economic data including retail sales and jobless claims. The currency held narrow ranges against major peers, reflecting a cautious tone ahead of the releases.

Markets took a more measured tone as President Trump met with China's Premier Xi while traveling abroad, while the Iran-US conflict appeared temporarily on hold, easing some geopolitical anxiety. Crude oil traded about $0.70 lower on the day, fluctuating above and below the $100 level as traders weighed the pause in tensions against ongoing supply concerns. US equity futures were modestly higher in premarket trading after both the S&P 500 and NASDAQ closed at fresh all-time record highs yesterday. Dow futures were up around 40 points, the S&P 500 higher by 25 points, and the NASDAQ up 69 points. Treasury yields moved lower, supporting a slightly risk-on tone.

For forex traders, the focus now shifts to the US retail sales and jobless claims data due later today. Strong retail sales could reinforce expectations of a resilient US economy and support the dollar, while weak data might weigh on the currency. The jobless claims figure will be watched for any signs of labor market softening. Traders can track these moves in real-time on NowPrice's live FX dashboard. Looking ahead, next week's Federal Reserve meeting minutes and inflation data will be key for the dollar's direction, as markets continue to price in rate cut expectations for later this year.