EUR/USD
EUR/USD inches higher to near 1.1200 in European trading hours on Wednesday. The US Dollar stays defensive after the cooler-than-expected US April inflation data. Traders await the speeches from ECB and Fed policymakers and trade headlines for fresh trading impulse.
GBP/USD
GBP/USD is trading at atound 1.3300 in Wednesday’s European session, stabilizing after posting over 1% gains in the previous session. The pair treads water as the US Dollar pauses its decline, looking for fresh catalysts. Speeches from BoE and Fed policymakers are in focus.
USD/JPY
The Japanese Yen (JPY) retains its positive bias for the second straight day against a softer US Dollar (USD), with the USD/JPY pair trading near the 147.00 mark or the daily low heading into the European session on Wednesday. The Bank of Japan (BoJ) Deputy Governor Shinichi Uchida’s hawkish remarks on Tuesday keep the door open for further policy normalization and turn out to be a key factor underpinning the JPY. The USD, on the other hand, is undermined by bets that the Federal Reserve (Fed) will cut interest rates at least two times this year, bolstered by Tuesday’s softer US consumer inflation figures.
AUD/USD
The US Dollar faced downward pressure on Tuesday, retreating to 101.50, following a softer than expected Consumer Price Index (CPI) for April. The Australian Dollar, on the other hand, surged by nearly 1.5% against the US Dollar, boosted by improving global sentiment and the easing of US-China trade tensions. Investors now eye further economic data. The market expects that the Federal Reserve (Fed) will maintain its current rate policy through mid-2025.
NZD/USD
The NZD/USD pair advanced for the second consecutive session, hovering around 0.5940 during Wednesday’s Asian trading hours. The pair strengthened as the US Dollar (USD) came under pressure following softer-than-expected US inflation figures. Market participants now await the release of the US Producer Price Index (PPI) and the University of Michigan’s Consumer Sentiment Survey, both scheduled for later this week.
USD/CAD
The USD/CAD pair weakens to near 1.3925 during the early Asian session on Wednesday. The US Dollar (USD) edges lower against the Canadian Dollar (CAD) after inflation data came in below market expectations.
USD/CHF
The USD/CHF pair continues to lose ground for the second consecutive day, trading near 0.8390 during Wednesday’s Asian session. Downside risks appear limited, as growing expectations of further monetary easing by the Swiss National Bank (SNB) weaken the Swiss Franc (CHF).
CRUDE OIL
Oil prices retreated on Wednesday as traders eyed a potential jump in U.S. crude inventories, though prices held near two-week highs amid optimism after the United States and China agreed to temporarily lower their reciprocal tariffs.
Gold price drifts lower as the US-China trade truce optimism undermines safe-haven demand. Tuesday’s US CPI print reaffirms Fed rate cut bets and keeps the USD bulls on the defensive. Geopolitical risks could limit deeper losses for the XAU/USD pair, warranting caution for bears.
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