EUR/USD
EUR/USD is defending minor gains above 1.1100 in the European morning on Wednesday. A broadly subdued US Dollar, amid increased bets of an outsized Fed rate cut and a cautiously optimistic market mood, underpins the pair. All eyes remain on the Fed policy verdict.
GBP/USD
GBP/USD gains traction and rises toward 1.3200 in the European morning on Wednesday. The data from the UK showed that the annual core CPI rose 3.6% in August, up from a 3.3% increase in July, and supported the GBP. Focus shifts to Fed policy decisions.
USD/JPY
The Japanese Yen (JPY) retraces its losses against the US Dollar due to rising expectations of a bumper Federal Reserve (Fed) rate cut on Wednesday. Traders will shift their focus on the BoJ policy decision on Friday, with expectations of keeping rates unchanged while leaving the possibility open for further rate hikes.
AUD/USD
The Australian Dollar (AUD) extends its upside for the third successive day against the US Dollar (USD) on Wednesday. Investors await the Federal Reserve (Fed) interest rate decision later in the day, although rising expectations of a 50 basis points cut should support risk-sensitive currencies like AUD.
NZD/USD
The NZD/USD pair attracts some buyers around 0.6190 on Wednesday during the early Asian session. The resumption of the US Dollar (USD) weakness amid firmer bets of the Federal Reserve (Fed) rate cut provides some support to the pair. Investors will closely monitor the Fed interest rate decision on Wednesday.
USD/CAD
The USD/CAD pair attracts fresh sellers during the Asian session on Wednesday and currently trades below the 1.3600 mark, down less than 0.10% for the day. Spot prices, meanwhile, remain confined in a familiar range held over the past week or so as traders keenly await the key central bank event risk before positioning for the next leg of a directional move.
USD/CHF
USD/CHF retraces its recent gains, trading around 0.8450 during the Asian hours on Wednesday. The US Dollar (USD) faces challenges amid rising expectations that the US Federal Reserve (Fed) may announce a substantial 50 basis point rate cut at September’s meeting scheduled later in the North American session.
CRUDE OIL
Oil prices fell on Wednesday and were set to snap a two-session winning streak ahead of a likely interest rate cut by the U.S. Federal Reserve, as weak macroeconomic data weighed on demand despite the potential for more violence in the Middle East.
Gold price is finding some fresh demand near $2,570 early Wednesday, as buyers look to fight back control following the previous day’s correction from record highs of $2,590. Traders, however, could refrain from placing fresh directional bets on Gold price in the lead-up to all-important US Federal Reserve monetary policy announcements.
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