EUR/USD
The EUR/USD pair trades with mild gains around 1.1070 during the Asian trading hours on Wednesday. Meanwhile, any signs of rising geopolitical tensions in the Middle East could weigh on riskier assets like the Euro (EUR). Investors will keep an eye on the US ADP Employment Change data for September, which is due later on Wednesday.
GBP/USD
GBP/USD remains tepid following the losses registered in the previous session, trading around 1.3280 during the Asian hours on Wednesday. This downside could be attributed to the risk aversion due to the rising geopolitical tensions in the Middle East, which undermines the risk-sensitive Pound Sterling (GBP) and GBP/USD pair.
USD/JPY
USD/JPY is extending recovery gains above 144.00 in Wednesday’s Asian trades, as the Japanese Yen gives into the uncertainty surrounding the BoJ’s potential rate hikes. Risk reset also seems to aid the pair’s rebound, as markets push aside Mideast concerns. The focus stays on US ADP data and Fedspeak.
AUD/USD
AUD/USD holds a renewed uptick above 0.6900 in the Asian session on Wednesday. Fears of a wider war in the Middle East, following the overnight Iranian bombings on Israel, check the bounce in the higher-yielding Aussie. US jobs data and Fedsepak are next in focus.
NZD/USD
The NZD/USD pair gathers strength near 0.6285 despite the firmer US Dollar (USD). Nonetheless, the cautious mood in the market amid the escalating tension in the Middle East could lift the Greenback. Investors will keep an eye on the US ADP Employment Change and Fedspeak.
USD/CAD
The USD/CAD pair extends the previous day’s retracement slide from the 1.3535-1.3540 region, or a one-week high and remains under some selling pressure for the second straight day on Wednesday. The downfall drags spot prices to the 1.3475 area during the Asian session and is sponsored by a modest uptick in Crude Oil prices.
USD/CHF
USD/CHF extends its gains for the third successive day, trading around 0.8470 during the early European hours on Wednesday. This upside of the USD/CHF pair is attributed to the latest speech from the Federal Reserve (Fed) Chairman Jerome Powell.
CRUDE OIL
Oil prices jumped by over a dollar on Wednesday due to rising concerns Middle East tensions could escalate, potentially disrupting crude output from the region, following Iran’s biggest ever military blow against Israel.
Gold price edges lower and erodes a part of the previous day’s gains, though the downside seems limited on the back of rising geopolitical tensions in the Middle East. Furthermore, hopes that China’s stimulus measures will revive physical demand could underpin the XAU/USD.
Any information provided therein are indicative and subjective to the technical analysis method or trading patterns used and the timing of their release. Those are provided as general market information and/or market commentary and/or the publication of market/factual data and should not be construed as containing personal and/or other investment recommendation, and/or to be Investment Advice or independent Investment Research. As such, the legal and regulatory requirements in relation to independent investment research do not apply to this material and it is not subject to any prohibition on dealing ahead of its dissemination. For the full Risk Disclaimer click here.
