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• The U.S. dollar held on to gains against a basket of its peers on Thursday, after the Federal Reserve gave an upbeat assessment of the world’s biggest economy and stayed on course to gradually lift interest rates.

The dollar index .DXY, which measures the greenback against a basket of six currencies, was a shade higher on Thursday compared to the previous day to trade at 94.700, well off a 3-1/2-week low of 94.084 hit last week.

• “The Fed delivered rather hawkish comments in the statement emphasizing the strength of the U.S. economy,” said Osamu Takashima, head of G10 FX strategy, at Citigroup Global Markets Japan.

“There was no big surprise in last night’s statement, but the overall tone was a little bit stronger than last one.”

• The dollar was under pressure against the yen, as the currency found support on the back of benchmark Japanese government bond yields touching a fresh 1-1/2-year high.

• The dollar dropped 0.15 percent to 111.56 yen JPY= though it still held on to much of its gains made on Tuesday following the Bank of Japan's pledge to keep rates low for an extended period, even as it made a new commitment to allow yields to move more freely.

• The euro remained soft against the dollar EUR=, trading 0.1 percent lower at $1.16505.

• The British pound was a tad lower, losing 0.2 percent to $1.3105 GBP=D3 ahead of the Bank of England's policy meeting later on Thursday, with markets widely expecting interest rates to be raised for the second time since the global financial crisis.

• U.S. President Donald Trump sought to ratchet up pressure on China for trade concessions by proposing a higher 25 percent tariff on $200 billion worth of Chinese imports, his administration said on Wednesday.

U.S. Trade Representative Robert Lighthizer said Trump directed the increase from a previously proposed 10 percent duty because China has refused to meet U.S. demands and has imposed retaliatory tariffs on U.S. goods.

• U.S. President Donald Trump said on Thursday he looked forward to meeting Kim Jong Un soon and thanked the North Korean leader for sending the suspected remains of U.S. soldiers killed in the 1950-1953 Korean War back to the United States.

The escalating trade conflict between the United States and China is hitting German companies doing business in both countries, a survey by the DIHK Chambers of Industry and Commerce showed on Thursday.

• The DIHK said a survey among its members doing business in China showed that 41 percent were already affected by the higher tariffs when exporting to the United States while 46 percent reported higher costs when importing from the United States.

• Slower income growth and soft home sales are hurting consumer spending growth in China, an official with the country’s planning agency said on Thursday, although consumption was expected to pick up again as various seasonal factors recede.

A slowdown in home sales growth in the first half of the year to 3.3 percent from 16.1 percent a year earlier has hit spending on housing-related items such as furniture, Liu Yunan, a deputy department head at the National Development and Reform Commission (NDRC), told reporters at a news conference.

• Bank of Japan Deputy Governor Masayoshi Amamiya said on Thursday the central bank will purchase government bonds “promptly and appropriately” if yields rise rapidly.

His comments came as Japanese bond yields JP10YTN=JBTC hit a 1-1/2-year high on Thursday with investors continuing to test the limits of the central bank’s new commitment announced two days ago to allow debt markets to move more freely.

• The Bank of England is expected to raise interest rates, despite uncertainty over what Brexit means for the U.K. economy.

• Mexico’s central bank is expected to leave its main interest rate stable on Thursday after a strong appreciation of the peso cooled inflation pressures and data showed a weakening economy.

• Oil prices rose on Thursday, steadying after losses over the past two days from a surprise increase in U.S. crude inventories and renewed concerns over trade friction between the U.S. and China.

Brent crude futures LCOc1 were up 16 cents, or 0.2 percent, at $72.55 a barrel by 0503 GMT, after dropping 2.5 percent on Wednesday.

U.S. West Texas Intermediate (WTI) crude CLc1 futures increased by 6 cents, or 0.1 percent, to $67.72 a barrel. They fell 1.6 percent in the previous session.

• Oil costs are on the slide once again as constraints and supply buildups prove to be short-lived.

Further production cap increases from OPEC remain a possibility moving forward as prices continue to stabilize.

WTI levels to watch

With WTI crude barrels falling back beneath 68.00, buyers will be looking to halt any further declines into the last swing low at the 67.00 level in hopes of propping prices back over last week's high of 70.40 with eyes on the year's current highs of 75.35, while bears will be looking to drive the action further down into mid-June's lows at 63.50.