EUR/USD
EUR/USD remains subdued for the fourth consecutive day, trading around 1.0530 during the Asian session on Wednesday. However, the pair faced challenges as the US Dollar gained support from market caution, which could be attributed to the upcoming US Consumer Price Index data release due on Wednesday.
GBP/USD
GBP/USD extends its winning streak for the third successive session, trading around 1.2780 during the Asian hours on Wednesday. The Pound Sterling gains support against its major peers as traders become increasingly confident that the Bank of England will keep its interest rates unchanged at 4.75% in December’s monetary policy decision.
USD/JPY
The Japanese Yen (JPY) sticks to modest intraday gains heading into the European session on Wednesday, though it lacks bullish conviction amid scepticism regarding the Bank of Japan’s (BoJ) intention to hike interest rates again in December. Apart from this, a further recovery in the US Treasury bond yields contributes to capping the upside for the lower-yielding JPY.
AUD/USD
The Australian Dollar (AUD) remains subdued against the US Dollar (USD) on Wednesday. The AUD/USD pair faced challenges due to the broadly stronger US dollar (USD). Traders now focus on the release of crucial US November Consumer Price Index (CPI) data, which are expected to be released later in the North American session.
NZD/USD
The NZD/USD pair trades on a softer note around 0.5795 during the Asian session on Wednesday. However, the upside of the pair seems limited amid weak Chinese trade data and the potential fresh tariffs from US President-elect Donald Trump. Traders await China’s closed-door annual economic conference and US November Consumer Price Index (CPI) data.
USD/CAD
The USD/CAD pair edges lower during the Asian session on Wednesday, though it lacks follow-through and remains close to the highest level since April 2020 touched the previous day. Spot prices currently trade just above mid-1.4100s, down less than 0.10% for the day, as traders keenly await the US consumer inflation figures and the Bank of Canada (BoC) policy decision before placing fresh directional bets.
USD/CHF
The USD/CHF pair trades in positive territory for the fourth consecutive day around 0.8835 during the early European session on Wednesday. The uptick of the pair is bolstered by the stronger Greenback due to the rising bets for a less dovish stance from the US Federal Reserve (Fed). Investors will keep an eye on the US November Consumer Price Index (CPI) data, which is due later on Wednesday. The attention will shift to the Swiss National Bank (SNB) interest rate decision on Thursday.
CRUDE OIL
Oil prices rose on Wednesday, with market participants expecting demand to rise in the world’s largest crude importer, after Beijing announced a looser monetary policy to stimulate economic growth in China.
Gold price retreats from over a two-week top as bulls turn cautious ahead of the US CPI report. Bets for a less dovish Fed, rising US bond yields underpin the USD and weigh on the commodity. Geopolitical risks, trade war fears and rate-cut bets should help limit losses for the XAU/USD.
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