EUR/USD
The EUR/USD pair consolidates gains around 1.0745 during the early European session on Wednesday. Data released on Tuesday showed that the annual inflation rate in the Eurozone cooled down in June, in line with the market consensus.
GBP/USD
GBP/USD lacks firm intraday direction on Wednesday amid mixed fundamental cues. August BoE rate cut bets cap the GBP ahead of the UK general elections on Thursday. Traders also seem reluctant and prefer to wait for the release of the FOMC minutes.
USD/JPY
The Japanese Yen (JPY) holds losses on Wednesday, remaining near its low of 161.75, a level not seen since 1986, recorded in the previous session. This decline can be attributed to final data indicating that Japan’s business activity turned contractionary in June. Market participants focus on the possibility of foreign exchange (FX) intervention from the Bank of Japan (BoJ), which could support the JPY and limit the upside of the USD/JPY pair.
AUD/USD
The Australian Dollar (AUD) appreciates for the second successive day on Wednesday. This upside is attributed to the Judo Bank’s Australia Purchasing Managers Index (PMI) figures, which showed a slight improvement in June.
NZD/USD
The NZD/USD pair builds on the previous day’s goodish rebound from the 0.6050-0.6045 area, or its lowest level since mid-May and attracts some follow-through buyers for the second successive day on Wednesday.
USD/CAD
The USD/CAD pair edges lower to 1.3675 during the early Asian trading hours on Wednesday, supported by the weaker US Dollar (USD). Traders will take more cues from the US ADP Employment Change, ISM Services PMI for June, and the FOMC Minutes, which are due later on Wednesday.
USD/CHF
The USD/CHF pair trades with a mild positive bias for the seventh successive day on Wednesday and is currently placed just below its highest level in over a month touched the previous day. Spot prices, however, remain below mid-0.9000s as investors await more cues about the Federal Reserve’s (Fed) rate-cut path before placing fresh directional bets.
CRUDE OIL
Oil prices rose in Asian trade on Wednesday, staying near two-month highs after industry data showed U.S. inventories saw a massive drawdown in the past week, boosting optimism over demand.
Gold price is trading around a flatline near $2,330 early Wednesday, as traders consider the recent US jobs data and Federal Reserve Chairman Jerome Powell’s speech, bracing for yet another busy US calendar.
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