U.S. New Home Sales, Canada Core Retail Sales, FOMC Members Speak

The euro came under pressure on Thursday, slipping below the 1.1300 mark against the U.S. dollar, as a combination of strong U.S. economic indicators and weaker-than-expected Eurozone data fueled Greenback strength.

The U.S. dollar gained broadly after S&P Global's preliminary Purchasing Managers’ Index (PMI) readings for May exceeded forecasts.

Additionally, the labor market showed further signs of strength. Initial jobless claims for the week ending May 17 fell to 227,000, beating expectations of 230,000 and down from the prior week’s 229,000.

The upbeat data, coupled with renewed fiscal momentum, provided further tailwinds for the Greenback. President Donald Trump’s sweeping tax and spending proposal—dubbed the “One Big Beautiful Bill”—cleared the House of Representatives and now heads to the Senate for deliberation.

Federal Reserve Governor Christopher Waller added to the market narrative, suggesting that if tariffs remain around 10%, the U.S. economy would remain on solid footing in the second half of 2025. In such a scenario, he indicated that the Fed might resume its rate-cutting cycle later this year.

Across the Atlantic, Eurozone economic data disappointed. The HCOB Flash PMIs for May revealed a contraction in both services and manufacturing activity. Germany, the bloc’s largest economy, posted similarly weak figures. On a more positive note, Germany’s IFO Business Climate index improved to 87.5 in May from 86.9 the previous month, suggesting some optimism among firms.

Bitcoin soared to a fresh all-time high on Thursday, climbing over 1.5% in early trading to reach the $110,000 milestone. The flagship cryptocurrency peaked above the level of $111,000, extending a powerful rally that began after President Donald Trump's re-election in November—an outcome seen as favorable by crypto investors.

The broader crypto market followed suit. Ether, the second-largest digital asset by market cap, jumped more than 4%.

Recent price momentum was further fueled by the U.S. Senate’s advancement of the GENIUS Act, a pro-industry bill aimed at establishing a comprehensive framework for digital asset regulation. The legislation outlines rules for stablecoins—cryptocurrencies pegged to fiat currencies like the U.S. dollar—potentially paving the way for their mainstream adoption in payments and financial services.

If passed, the GENIUS Act could usher in a new era of legitimacy and investor confidence in digital currencies, encouraging fresh institutional capital into space.

Bitcoin’s rally coincided with rising U.S. Treasury yields, as investors digested news of a House-passed domestic policy bill expected to significantly increase federal spending.

This fiscal outlook, along with a recent credit downgrade by Moody’s, has led to heightened concerns over the U.S. deficit. As a result, some investors are seeking refuge in alternative stores of value—including Bitcoin—amid mounting pressure on the dollar.

As political developments and fiscal uncertainty continue to converge with growing crypto adoption, analysts say Bitcoin may remain a key barometer of investor sentiment in a rapidly evolving financial landscape.

Oil prices edged lower on Thursday as markets reacted to reports that OPEC and its allies are considering increasing output as early as July, raising fresh concerns about a potential oversupply against uncertain demand growth.

According to a Bloomberg report, the Organization of the Petroleum Exporting Countries and its allies—collectively known as OPEC+—are discussing a potential 411,000 barrels-per-day (bpd) production increase for July. Delegates cited in the report noted that while no final decision has been made, the topic will be central at the group’s next policy meeting scheduled for June 1.

Further weighing on prices was data from the U.S. Energy Information Administration (EIA) released Wednesday, showing a surprise increase in crude and refined product inventories.

Capping some of the downside pressure, U.S. Secretary of State Marco Rubio announced that Chevron’s license to operate in Venezuela is set to expire on May 27. The potential disruption to Venezuelan output could tighten global supplies slightly, depending on how the situation evolves.

Looking ahead, all attention will be on the June 1 OPEC+ meeting a 411,000-bpd hike—likely led by Saudi Arabia—is the most probable outcome.

U.S. equity markets closed largely unchanged on Thursday, recovering from early-session losses as Treasury yields retreated following the House of Representatives’ approval of President Donald Trump’s tax and spending bill.

After a volatile session, the US 500 and US 30 finished virtually flat, while the tech-heavy US Tech 100 posted minor gains. The stabilization in equities came after the yield on the benchmark 10-year U.S. Treasury note fell 5.4 basis points to 4.543%, easing off its highest level since February.

Investor sentiment has been rattled in recent days by concerns over rising government debt and inflationary pressures. On Wednesday, all three major indexes suffered their steepest declines in a month, as a spike in yields fueled fears of tighter financial conditions.

The bill passed Thursday by the Republican-led House fulfills several of Trump’s campaign promises, including tax cuts and increased government spending. However, the nonpartisan Congressional Budget Office estimates it will add $3.8 trillion to the national debt over the next decade, pushing the total U.S. debt burden past $36 trillion.

Megacap growth names such as Nvidia, Amazon, and Tesla posted gains. Alphabet rose more than 1%, reaching a nearly three-month high, while Apple slipped 0.45%.

Snowflake surged more than 13% after raising its fiscal 2026 product revenue forecast, signaling strong demand in the cloud computing space.