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The Pound Sterling (GBP) has extended its rally above 1.2700 against the US Dollar after the Bank of England (BoE) maintained interest rates steady at 5.25% in the finale of 2023. This was the third straight time when the BoE maintained the status quo through a 6-3 majority as anticipated. BoE policymakers: Megan Greene, Jonathan Haskel, and Katherine Mann endorsed raising interest rates one more time by 25 basis points (bps).

The USD/CHF pair stages a modest intraday recovery from the vicinity of the monthly low, around the 0.8665 area and extends its steady ascent through the first half of the European session on Thursday. Spot prices hold steady near the 0.8720 region and move little after the Swiss National Bank (SNB) announced its policy decision.

The Japanese Yen (JPY) strengthens across the board and rallies around 225 pips against the US Dollar, hitting over a three-month peak during the early part of the European session on Thursday. Investors have been rapidly pricing in the possibility that the Bank of Japan (BoJ) will scrap the negative interest-rate regime sooner than expected. Adding fuel to speculation of a move away from the ultra-loose monetary policy, the BoJ has been conducting a special survey of market participants to discuss its impact and side effects. Furthermore, BoJ Governor Kazuo Ueda's visit to Prime Minister Fumio Kishida’s office lifted bets for a major policy shift by the Japanese central bank and provided a strong boost to the JPY.

The US Dollar (USD) is going all in for risk off this Monday as tensions in the Middle East are creating risk off across the board in equity markets. With a flight to safe havens, yields are soaring in favor of the Greenback, which in it turns sees traders come back and buy the US Dollar. This makes an interesting case going forward, if the US Dollar Index (DXY) might be breaking back above a crucial technical indicator with more strenght ahead.

Gold price hit a new record high near $2,150 at the weekly opening as markets reacted to escalating geopolitical tensions in the Middle East. October Factory Orders will be the only data featured in the US economic docket on Monday. Investors will continue to pay close attention to headlines surrounding the Israel-Hamas conflict and comments from central bankers.

Another day of mixed trading was seen in Asia on Tuesday, as traders took the lead from the negative close on Wall Street and bore the brunt of renewed China concerns. Beijing's Stock Exchange suffered a 6% sell-off after major shareholders were advised to refrain from selling on Monday. China’s property market issues also continue to sap investor’s confidence.

GBP/USD climbed above the 1.2600 figure during the early morning in the North American session after bouncing from daily lows of 1.2590 due to data portraying the UK economy’s resilience despite the Bank of England’s (BoE) tightening. The pair is trading at 1.2607, clinging to 0.10% gains at the time of writing.

Major currency pairs extend their range play into Monday, as investors refrain from placing fresh directional bets amid souring risk sentiment and ahead of key inflation data from the United States (US) and the Eurozone later this week.

Action in financial markets turned subdued on Thursday as trading conditions remained thin on Thanksgiving Day. Early Friday, major currency pairs continue to trade in familiar ranges. S&P Global Manufacturing and Services PMI data will be featured in the US economic docket ahead of the weekend. Stock and bond markets in the US will operate for half-day.

EUR/USD continues to trade in positive territory above 1.0900 in the European session on Thursday, supported by the upbeat PMI data from Germany and the Eurozone, which showed a slowdown in the pace of contraction in private sector's activity. The ECB will release the October meeting accounts later in the day.