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A steady stream of US economic data will headline an otherwise uneventful day for the global financial markets on Thursday. Trade volumes are expected to remain muted ahead of the new year.

There are no major data releases scheduled for Europe on Thursday. At 09:00 GMT, the European Central Bank (ECB) will release its Economic Bullet, which is published two weeks after the central bank's Governing Council meeting. The ECB is embarking on a long path to policy normalization, beginning first by reducing the pace of monthly bond purchases.

In the United States, the Commerce Department will get the ball rolling at 12:30 GMT with a report on the goods trade balance. The November deficit is expected to dip to $67.6 billion from $68.3 billion the month before.

Separately, the Department of Labor will issue its weekly report on jobless claims at 12:30 GMT. The number of Americans filing for first-time unemployment benefits is expected to fall by 5,000 to a seasonally adjusted 240,000 for the week ended 22 December. Continuing claims, which reflect the number of people still receiving unemployment benefits, is expected to fall to 1.9 million in the period ended 15 December.

A report on wholesale inventories will also be released at 13:30 GMT. Inventory levels are forecast to rise 0.4% month-on-month following a 0.5% drop the month before.

Later in the morning, ISM-Chicago Inc. will release the December edition of the Chicago purchasing managers' index (PMI). The monthly gauge is forecast to show a drop to 62.5 from 63.9 in November.

Energy traders will be keeping close tabs on the weekly crude inventory report courtesy of the US Energy Information Administration (EIA). The EIA is expected to show a draw of 3.9 million barrels for week ended 22 December, following a drop of nearly 6.5 million barrels the week before.

In currency news, the US dollar index (DXY) declined on Wednesday, as energy and precious metals commodities rallied. The dollar index, which tracks the greenback against a basket of six currencies, fell 0.3% to 93.03.

EUR/USD

Europe's common currency retreated from three-week highs on Wednesday, a sign that investors were booking profits after the sharp rally. The EUR/USD was last seen trading at 1.1900, where it was little changed compared to the previous close.

GBP/USD

The Cable traded at nearly two-week highs on Wednesday as the dollar declined across the board. The GBP/USD is still holding 1.3400, with key resistance levels expected at 1.3450 and 1.3500.

USD/JPY

The dollar-yen exchange rate fluctuated within a narrow range in mid-week trade, as low volumes and a lack of trading catalysts kept investors on the sidelines. The pair remains rangebound, with price action between 113.20 and 113.35.

AUDUSD is in a bullish phase in the short term after a strong rally off the key 0.7500 area was extended up to a 2-month high.

The recent rebound in AUDUSD has room to extend towards 0.7900 since prices crossed above the 200-day moving average and RSI is rising. However, the stochastic is overbought, which suggests prices could risk pulling back.

The market is currently testing the key 0.7800 level. A daily close above it would help keep momentum to the upside. A drop back below the 200-day MA (0.7690) would indicate that the bullish phase has ended and AUDUSD risks dropping down to 0.7500. This is expected to provide strong support though. Any move lower would see a resumption of the downtrend from the 0.8124 peak.

In the meantime, the short-term bullish phase is still in progress. A sustained move above 0.7800 could see the rally continue, with dips supported at 0.7690.

With only two trading sessions remaining for 2017, liquidity dried up across the global markets. This has been obvious in U.S. and European equities, where volumes dropped significantly. However, some investors continued to tweak their portfolios slightly, leading to insignificant price action. I don’t expect equities to deviate much throughout Thursday and Friday.

Interestingly though, traders continued selling off the U.S. dollar. One couldblame Wednesday’s U.S. consumer confidence report which fell from a 17-year high, but the dollar was declining before the release. I think the best explanation for the dollar weakness is the sharp fall in U.S. Treasury yields.

10-year bond yields dropped7 basis points on Wednesday, to reverse almost 50% of the gains from mid-December towards last week, where yields broke above 2.5% for the first time since March 2017.

Despite appetite forrisk sendingAsian equities to record highs on Thursday, the safe haven Yen is outperforming its major currency peers. USDJPY dipped below 113 for the first time in sixtrading days after the release of Bank of Japan meeting minutes. Some members are considering tightening monetary policy, if the economy continues to improve next year. This would be a significant shift in strategy for a Central Bank thought to be the last to exit the unconventional stimulus packages. However, I don’tthink the BoJ will move anytime soon due to subdued inflation;but, given the lack of liquidity, moves in currency markets may be exaggerated.

Commodity currencies are also enjoying a decent upside, after copper prices rallied to their highest level in almost four years.Oil prices remained close to a two-and-a-half year high, and gold hit a one-month high. Considering that no Tier One economic reports will be released, the Aussie, Kiwi and Looniewill continue to follow commodity prices’ direction.

The USD is weaker against all the majors today, continuing the pressure from yesterday. End of year liquidity is light and many of the themes from earlier in the month are reversing. The dollar is currently at session lows with the NZDUSD seeing some of the biggest gains, up 0.47% to 0.70910.

Swiss UBS Consumption Indicator (Nov) was released yesterday close to previous at 1.67, with the prior number of 1.54. Swiss ZEW Survey – Expectations (Dec) was released, coming in at 52.0. The previous number was 40.7. USDCHF found support at 0.988868 and went higher to 0.99022 but declined as USD trading took over later in the morning, finishing the day at 0.98616.

US Pending Home Sales (MoM) (Nov) came in at 0.2% from a forecast of -0.5% with a prior reading of 3.5%. Pending Home Sales (YoY) (Nov) data was also released with the number coming in at 0.6%. Last month, this figure was 1.2%. EURUSD made a high of 1.19099 but then moved lower to 1.18851 after the data.

Japanese Retail Sales (MoM) (Nov) was out overnight, up 1.9% from a 0.0% forecast and 0.0% prior. Retail Sales (YoY) (Nov) was in at 2.2% v 1.2% expected and -0.2% previously. Large Retailers Sales (Nov) was 1.4% v -0.6% expected from -0.7% prior. USDJPY tested resistance at 113.2630 as the data was released but sold off soon after continuing to decline through the session.

EURUSD is up 0.39% overnight, trading around 1.19328.

USDJPY is down -0.48% in early session trading at around 112.797.

GBPUSD is up 0.32% trading around 1.34378.

USDCHF is down -0.43% this morning trading around 0.98210.

Gold is up 0.29% early morning trading at around $1,290.85.

WTI is up 0.29%, trading around $59.80.

Major data releases for today:

At 09:00 GMT ECB Economic Bulletin will be released.

At 13:30 GMT US Continuing Jobless Claims (Dec 15) 1.900M expected from 1.932M prior. Initial Jobless Claims (Dec 22) expected to be 240K with a previous reading of 245K. USD pairs could potentially see movement in price action as a result of data missing forecasts.

At 14:45 GMT Chicago Purchasing Managers Index (Dec) with a consensus of 62.0. The prior number was 63.9.

At 16:00 GMT EIA Crude Oil Stocks change (Dec 22) expected draw of -3.970M v the previous reading of -6.495M. This data release was delayed due to holidays on Monday for Christmas. Oil traders will watch for divergence from expected data and trends forming in the market.

For the 24 hours to 23:00 GMT, the AUD rose 0.56% against the USD and closed at 0.7769.

LME Copper prices rose 1.7% or $121.0/MT to $7140.0/MT. Aluminium prices rose 2.9% or $62.5/MT to $2199.5/MT.

In the Asian session, at GMT0400, the pair is trading at 0.7784, with the AUD trading 0.19% higher against the USD from yesterday’s close.

The pair is expected to find support at 0.7753, and a fall through could take it to the next support level of 0.7721. The pair is expected to find its first resistance at 0.7800, and a rise through could take it to the next resistance level of 0.7815.

Moving ahead, Australia’s private sector credit data for November, set to release overnight, will be on investors’ radar.

The currency pair is trading above its 20 Hr and 50 Hr moving averages.

For the 24 hours to 23:00 GMT, the EUR rose 0.37% against the USD and closed at 1.1901.

The US Dollar declined against its key counterparts, following downbeat US consumer confidence report.

The CB consumer confidence index dropped to a three-month low level of 122.1 in December, as Americans remained less optimistic about the nation's economic and future job prospects. The index had registered a revised level of 128.6 in the prior month, while markets were expecting a drop to a level of 128.0.

On the other hand, the nation's pending home sales unexpectedly advanced 0.2% on a monthly basis in November, compared to a gain of 3.5% in the prior month and defying market consensus for a fall 0.4%.

In the Asian session, at GMT0400, the pair is trading at 1.1910, with the EUR trading 0.08% higher against the USD from yesterday's close.

The pair is expected to find support at 1.1878, and a fall through could take it to the next support level of 1.1845. The pair is expected to find its first resistance at 1.1927, and a rise through could take it to the next resistance level of 1.1943.

Going ahead, investors would keep a close watch on the European Central Bank's (ECB) economic bulletin report, due to release in a few hours. Moreover, the US advance goods trade balance figures for November and initial jobless claims data, scheduled to release later in the day, will be on investors' radar.

The currency pair is trading above its 20 Hr and 50 Hr moving averages.

For the 24 hours to 23:00 GMT, the GBP rose 0.25% against the USD and closed at 1.3407.

In the Asian session, at GMT0400, the pair is trading at 1.3420, with the GBP trading 0.1% higher against the USD from yesterday’s close.

The pair is expected to find support at 1.3383, and a fall through could take it to the next support level of 1.3347. The pair is expected to find its first resistance at 1.3443, and a rise through could take it to the next resistance level of 1.3467.

Going ahead, traders would keep a close watch on the release of UK’s BBA mortgage approvals for November, due in a few hours.

The currency pair is trading above its 20 Hr and 50 Hr moving averages.

For the 24 hours to 23:00 GMT, the USD marginally rose against the JPY and closed at 113.24.

In the Asian session, at GMT0400, the pair is trading at 113.16, with the USD trading 0.07% lower against the JPY from yesterday's close.

According to the Bank of Japan's (BoJ) latest summary of opinions report, some board members urged for a discussion over raising interest rates or lowering purchases of exchange-traded funds (ETF) in response to the improving economic fundamentals in the Japanese economy.

On the macro front, Japan's seasonally adjusted retail trade climbed 1.9% MoM in November, compared to a revised fall of 0.1% in the prior month. Market participants had anticipated the retail trade to advance 0.7%. Moreover, the nation's large retailers' sales rebounded 1.4% in November, beating market expectations for an increase of 1.0% and compared to a drop of 0.7% in the preceding month.

Other data revealed that Japan's preliminary industrial production grew 0.6% on a monthly basis in November, topping market consensus for an advance of 0.5%. In the previous month, industrial production had risen 0.5%.

The pair is expected to find support at 113.07, and a fall through could take it to the next support level of 112.99. The pair is expected to find its first resistance at 113.31, and a rise through could take it to the next resistance level of 113.47.

The currency pair is trading below its 20 Hr and 50 Hr moving averages.

For the 24 hours to 23:00 GMT, the USD declined 0.39% against the CHF and closed at 0.9858.

In economic news, Switzerland’s economic expectations index registered a rise to a level of 52.0 in December, jumping to its highest in nearly eight years. The index had recorded a reading of 40.7 in the prior month.

On the other hand, the nation’s UBS consumption indicator inched down to a level of 1.67 in November, compared to a revised level of 1.68 in the prior month.

In the Asian session, at GMT0400, the pair is trading at 0.9848, with the USD trading 0.1% lower against the CHF from yesterday’s close.

The pair is expected to find support at 0.9829, and a fall through could take it to the next support level of 0.9811. The pair is expected to find its first resistance at 0.9885, and a rise through could take it to the next resistance level of 0.9923.

The currency pair is trading below its 20 Hr and 50 Hr moving averages.

For the 24 hours to 23:00 GMT, the USD declined 0.23% against the CAD and closed at 1.2660.

In the Asian session, at GMT0400, the pair is trading at 1.2637, with the USD trading 0.18% lower against the CAD from yesterday’s close.

The pair is expected to find support at 1.2614, and a fall through could take it to the next support level of 1.2590. The pair is expected to find its first resistance at 1.2675, and a rise through could take it to the next resistance level of 1.2712.

Amid no macroeconomic releases in Canada today, investor sentiment would be governed by global macroeconomic news.

The currency pair is trading below its 20 Hr and 50 Hr moving averages.