The market mood remained fragile in Thursday, as the dust settled over the hawkish Fed rate cut, with Asian stocks mostly mixed while US equity futures and Treasury yields turned south. The US dollar was dragged broadly lower, as a result, and offered some lift to the Euro, GBP and Gold.

USD/JPY corrected sharply from Fed-led highs and lost the 108.00 handle after the Bank of Japan refrained from further easing, as widely expected, and boosted the Yen.

EUR/USD's struggle for strong directional bias continues after the hawkish Federal Reserve rate cut. The risks in EUR/USD looks skewed to the downside ahead of Eurozone data and ECB-speak.

GBP/USD remains pressured with mixed Brexit headlines and the US Dollar pullback playing contrasting tunes.

Markets gear up for a “Super Thursday”, as the UK Retail Sales and the Bank of England’s monetary policy decision accompanied by its minutes will headline in the European session ahead. The UK Retail spending data will be released at 08:30 GMT ahead of the BOE event at 11:00 GMT.

Meanwhile, in the NA session, a fresh batch of US economic data will be released, including the weekly Jobless Claims, Philly Fed Manufacturing Index and Existing Homes Sales.

Markets will also pay close attention to any fresh developments surrounding the Mid-East conflict, Brexit and US-China trade issue.

Oil prices have consolidated their losses with WTI Crude Oil trading around $58. Saudi Arabia sounded confident about restoring oil output following the weekend attack on its installations. US President Donald Trump has announced new sanctions on Iran, the alleged perpetrator of the attack, in a move that probably averts war.

Gold spot prices dropped to a fresh low and the lowest levels since 13th August, on the Federal Reserve decision whereby no real assurance of more cuts down the line were presented.