EUR/USD
EUR/USD keeps losses near 1.0900 in the European morning on Wednesday, snapping the three-day winning streak. EU responds with countermeasures to US tariffs on steel, exerting downward pressure on the pair amid a renewed US Dollar buying ahead of the US CPI data.
GBP/USD
The GBP/USD pair edges lower during the Asian session on Wednesday and erodes a part of the previous day’s strong move up to over a four-month peak. Spot prices currently trade around the 1.2935 region, though the downtick lacks bearish conviction.
USD/JPY
The Japanese Yen (JPY) remains on the back foot against the recovering US Dollar (USD) through the early European session on Wednesday, though it lacks follow-through amid hawkish Bank of Japan (BoJ) expectations. Data released earlier today showed that Japan’s annual wholesale inflation – Producer Price Index (PPI) – rose 4.0% in February, underscoring broadening inflationary pressure. Adding to this hopes that bumper wage hikes seen last year will continue this year remain supportive of the growing market acceptance that the BoJ will hike interest rates further.
AUD/USD
The AUD/USD pair rises to near 0.6300 as the US Dollar (USD) slides due to an uncertain United States (US) economic outlook. The pair benefits from a softer Greenback as investors focus on upcoming inflation data, which could influence Federal Reserve (Fed) policy expectations. However, persistent concerns over trade tensions and global growth continue to cap upside potential for AUD/USD.
NZD/USD
NZD/USD edges lower after registering gains in the previous session, trading around 0.5710 during the Asian hours on Wednesday. The pair faces headwinds amid broad risk aversion, driven by policy shifts by US President Donald Trump, particularly tariffs that increased the likelihood of a prolonged trade war.
USD/CAD
USD/CAD maintains its gains after a previous session of losses, trading around 1.4440 during Asian hours on Wednesday. The pair’s upside is supported by a stronger US Dollar (USD), driven by market caution ahead of the US Consumer Price Index (CPI) release and the Bank of Canada (BoC) interest rate decision later in the North American session.
USD/CHF
The USD/CHF pair trades in positive territory for the third consecutive day near 0.8840 during the early European session on Wednesday. The uptick of the pair is bolstered by the renewed US Dollar (USD) demand. Traders will keep an eye on the US February Consumer Price Index (CPI) inflation data, which is due later on Wednesday.
CRUDE OIL
Oil prices edged up on Wednesday, buoyed by a weaker dollar, but mounting fears of a U.S. economic slowdown and the impact of tariffs on global economic growth capped gains.
Gold price struggles to build on the overnight move up, though the downside seems limited. A modest USD bounce from a multi-month low and a positive risk tone cap the precious metal. Trade war fears and Fed rate cut bets support the XAU/USD pair ahead of the US CPI report.
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