EUR/USD
EUR/USD is losing ground below 1.1150 in early Europe on Wednesday. The pair extends the correction from yearly highs, in the face of resurgent US Dollar demand, as risk sentiment sours ahead of Fedspeak and Nvidia earnings report.
GBP/USD
GBP/USD is retreating toward 1.3200 in the early European morning on Wednesday, undermined by a fresh upswing staged by the US Dollar. Markets turn anxious ahead of speeches from the BoE and the Fed policymakers later in the day.
USD/JPY
The Japanese Yen (JPY) stays on the back foot against the US Dollar (USD) early Wednesday. The USD/JPY pair clings to recovery gains, courtesy of the cautious comments from the Bank of Japan (BoJ) Deputy Governor Ryozo Himino, who said that “BoJ will adjust the degree of monetary accommodation if it has growing confidence that its outlook for economic activity and prices will be realized.”
AUD/USD
AUD/USD is paring back gains to trade near 0.6800 in Asian trading on Wednesday, having reversed a spike to a new seven-month high of 0.6813. The Aussie pair caught a fresh bid wave and recaptured the 0.6800 barrier following the Australian monthly Consumer Price Index (CPI) data release. The inflation data showed that consumer prices in Australia cooled at a slower pace than expected in July, reporting a 3.5% YoY growth when compared to a 3.4% increase estimated and June’s 3.8% acceleration. Hot Australian inflation data re-kindled expectations of further interest-rate hikes from the Reserve Bank of Australia (RBA), fuelling a fresh leg up in the Aussie Dollar (AUD).
NZD/USD
The NZD/USD pair trades on a weaker note near 0.6245 after retracing from eight-month highs during the early Asian session on Wednesday. However, the downside of the pair is likely to be limited due to the weaker US Dollar (USD) after the Federal Reserve (Fed) signalled the upcoming rate cut this year. Fed’s Christopher Waller and Raphael Bostic are scheduled to speak later on Wednesday.
USD/CAD
USD/CAD is currently declining within a long-term range which has a ceiling in the 1.39s and a floor in the 1.31-1.32s. The pair is unfolding a down leg within this range as the US Dollar (USD) weakens. Both the medium and short-term trends are now bearish, which given “the trend is your friend” favors short positions over longs.
USD/CHF
USD/CHF extends its losing streak for the fourth successive day, trading around 0.8470 during the Asian hours on Wednesday. The USD/CHF pair may decline further due to safe-haven flows toward the Swiss Franc (CHF). The risk aversion sentiment prevails due to rising geopolitical tensions in the Middle East.
CRUDE OIL
Oil was little changed on Wednesday after a sharp drop in the previous session ended a three-day streak of gains, amid persistent concerns over both potential supply losses from the Middle East and North Africa and global fuel demand worries.
Gold price has returned to the red but remains within this week’s familiar range above $2,500 early Wednesday. Gold price replicates the negative action seen during Tuesday’s Asian session, awaiting speeches from US Federal Reserve policymakers for fresh hints on the interest-rate outlook.
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