EUR/USD
EUR/USD muddled through Tuesday’s market action, marking out a fresh near-term consolidation range near the 1.1300 major handle as Fiber traders wait for a reason to move. The Federal Reserve’s (Fed) midweek rate call is the key data event this week, keeping investor sentiment chained to its post for the time being.
GBP/USD
GBP/USD rose on Tuesday, climbing four-tenths of one percent on the day and testing the 1.3400 handle on headlines of a possible US-UK trade deal that would see the UK avoid the brunt of trade tariffs being actively pursued by the Trump administration.
USD/JPY
USD/JPY rallies nearly 100 pips to regain 143.00 in the Asian session on Wednesday amid US-China trade talks optimism, which dents demand for the safe-haven Japanese Yen. Any meaningful upside, however, still seems elusive in the wake of the divergent BoJ-Fed policy expectations. FOMC decision awaited.
AUD/USD
AUD/USD eases off the YTD peak but remains close to 0.6500 early Wednesday. Optimism over US-China trade talks and PBOC interest rate cuts announcements underpin the risk-sensitive Aussie. However, a modest USD uptick caps the upside as traders turn cautious ahead of the FOMC policy decision later today.
NZD/USD
The NZD/USD pair retreats following an Asian session uptick to the 0.6020-0.6025 area, or over a two-week high, and for now, seems to have snapped a three-day winning streak. Spot prices slide back below the 0.6000 psychological mark, hitting a fresh daily low in the last hour amid a combination of negative factors.
USD/CAD
USD/CAD is recovering its losses registered in the previous session, trading around 1.3790 during the Asian hours on Wednesday. The US Dollar (USD) is gaining strength as investors adopt a cautious stance ahead of the Federal Reserve’s (Fed) interest rate decision due later in the North American session.
USD/CHF
USD/CHF was under pressure on Tuesday, with the pair slipping lower amid continued softness in the broader US Dollar (USD). The pair is trading in the lower band of its recent range as global markets weigh the implications of Monday’s extraordinary Taiwan Dollar (TWD) move and its potential contagion across Asian currencies. Though the TWD pared some gains following central bank intervention, concerns about broader FX shifts continue to drive cautious positioning.
CRUDE OIL
Oil prices rose on Wednesday, holding slightly above recent four-year lows, as investors focused on U.S.-China trade talks and signs of lower U.S. production.
Gold price has come under intense selling pressure early Wednesday, correcting sharply from two-week highs of $3,435. Renewed optimism over the upcoming US-China trade talks and profit-taking ahead of the US Federal Reserve policy announcements.
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