EUR/USD
EUR/USD clings to recovery gains near 1.0400 in European trading on Wednesday. The US Dollar struggles to lure buyers amid Fed rate cut bets and a better market mood, underpinning the pair ahead of the US economic data releases and central bank talks.
GBP/USD
GBP/USD has found fresh demand and retakes the 1.2500 level in the European session on Wednesday. A positive shift in risk sentiment and a sustained US Dollar weakness, on Trump tariff uncertainty and Fed rate cuts, support the pair. US ADP and ISM PMI data are next in focus.
USD/JPY
The Japanese Yen (JPY) retains bullish bias through the early European session on Wednesday, with the USD/JPY pair hanging just above the 153.00 mark or its lowest level since December 13. A rise in Japan’s real wages reaffirms bets that the Bank of Japan (BoJ) will raise interest rates again, which, in turn, provides a strong boost to the JPY. Moreover, the prospects for more policy easing by the Federal Reserve (Fed) would result in a further narrowing of the rate differential between the US and Japan. This turns out to be another factor driving flows toward the lower-yielding JPY.
AUD/USD
The Australian Dollar (AUD) edges lower against the US Dollar (USD) amid an increased risk aversion following rising fears over US-China trade tensions. The AUD/USD pair failed to draw support from the improved Judo Bank Purchasing Managers Index (PMI) released on Wednesday.
NZD/USD
NZD/USD remains steady following the release of the Caixin Services Purchasing Managers’ Index (PMI) from China, New Zealand’s close trading partner. The New Zealand Dollar (NZD) also avoided to react on the domestic labor market data. The pair trades around 0.5650 during the Asian hours on Wednesday.
USD/CAD
The USD/CAD pair enters a bearish consolidation phase after registering heavy losses over the past two days and holds above the 1.4300 mark during the Asian session on Wednesday. Moreover, the fundamental backdrop warrants some caution before confirming that a sharp pullback from a two-decade high touched on Monday has run its course.
USD/CHF
The USD/CHF pair trades with mild gains around 0.9125 during the early European session on Wednesday. The markets might turn cautious later in the day as traders await the developments surrounding tariff negotiations with China.
CRUDE OIL
Oil prices declined on Wednesday as rising stockpiles in the U.S. and market worries about a new Sino-U.S. trade war offset President Donald Trump’s renewed push to eliminate Iranian crude exports.
Gold price builds on its steady intraday ascent through the first half of the European session on Wednesday and hits a fresh all-time peak, around the $2,862 region in the last hour. Investors continue to seek refuge in the traditional safe-haven bullion amid worries about the potential economic fallout from US President Donald Trump’s trade tariffs.
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