Forex Today: Markets quiet down ahead of US GDP revisions

Here is what you need to know on Thursday, December 21:

Major currency pairs stay relatively calm early Thursday as investors wait for the US Bureau of Economic Analysis to publish final revisions to the third-quarter Gross Domestic Product (GDP) data. The US economic calendar will also offer weekly Jobless Claims and Federal Reserve Bank of Philadelphia's Manufacturing Survey for December.

After edging lower in the first half of the day on Wednesday, the US Dollar (USD) Index staged a late rebound to close the day with marginal gains. The negative shift seen in risk sentiment, as reflected by the bearish action in Wall Street's main indexes, helped the USD find demand in the American session. Additionally, upbeat consumer sentiment and housing data supported the currency. Early Thursday, the USD Index seems to have gone into a consolidation phase below 102.50. US stock index futures trade in positive territory in the European morning, while the benchmark 10-year US Treasury bond yield recovers toward 3.9%. The US' annualized GDP growth is expected to be confirmed at 5.2% in Q3.

EUR/USD turned south and registered losses on Wednesday after closing the first two trading days of the week in the green. Early Thursday, the pair fluctuates in a tight channel at around 1.0950.

Following the sharp decline seen after softer-than-forecast inflation data from the UK, GBP/USD stabilized slightly below 1.2650 on Thursday. On Friday, the UK's Office for National Statistics will release Retail Sales and third-quarter GDP data.

USD/JPY edged lower on Wednesday after posting strong gains following the Bank of Japan (BoJ) policy announcements earlier in the week but managed to find a foothold near 143.00 on Thursday. The National Consumer Price Index data and the minutes of the BoJ's December policy meeting will be looked upon for fresh impetus in the early trading hours of Friday.

After dropping to a fresh multi-month low near 1.3300, USD/CAD regained its traction and closed in positive territory on Wednesday. The pullback seen in crude oil prices made it difficult for the commodity-sensitive Loonie to continue to outperform the USD. Statistics Canada will release October Retail Sales data later in the day.

Gold price turned south and declined to the $2,030 area on Wednesday. Falling US Treasury bond yields, however, allowed XAU/USD to limit its losses. Early Thursday, the pair moves up and down in a narrow band below $2,040.