Asian markets ended mixed on Thursday amid hopes for fresh European stimulus while new data reinforced expectations for tighter U.S. monetary policy.
The euro traded above the $1.06 handle, rebounding after hitting a seven-and-a-half month low of $1.0565 overnight, amid reports on Wednesday that European Central Bank (ECB) officials are considering unconventional easing measures, such as introducing a two tiered deposit rate, Reuters reported.
"According to the report, large depositors would be charged more than small depositors. This plan isn't likely to receive much support from Germany and France whose banks widely use the ECB's facility. However it is clear from today's price action that while investors have considered more stimulus, they have not considered how aggressive or creative they will be," said Kathy Lien, managing director of FX strategy at BK Asset Management.
Meanwhile, positive data on U.S. personal income, durable goods orders and weekly jobless claims released on Wednesday will likely boost the Federal Reserve's resolve to hike interest rates next month, analysts said. U.S. stocks closed narrowly mixed in low volume trade following the data deluge. Wall Street will be closed Thursday for Thanksgiving and the stock market closes at 1 p.m. ET on Friday.