EUR/USD
EUR/USD is holding firm, eyeing 1.1350 early Wednesday on the back of a sharp sell-off in the US Dollar. Renewed trade jitters, along with fresh concerns about the US fiscal health, add further pressure on the Greenback. The focus now is on the ECB and Fed-speak.
GBP/USD
GBP/USD gains traction and climbs toward 1.3450 in the European morning on Wednesday. The data from the UK showed that the annual CPI inflation jumped to 3.5% in April from 2.6% in March, surpassing the market expectation of 3.3% and boosting Pound Sterling.
USD/JPY
The Japanese Yen (JPY) builds on its intraday ascent against a broadly weaker US Dollar (USD) and drags the USD/JPY pair to a fresh two-week low, closer to mid-143.00s during the Asian session on Wednesday. Investors now seem convinced that the Bank of Japan (BoJ) will hike interest rates again in 2025 amid fears of broader and more entrenched price increases in Japan. The expectations were reaffirmed by BoJ Deputy Governor Shinichi Uchida’s hawkish comments earlier this week, which, along with reviving safe-haven demand, continue to boost the JPY.
AUD/USD
The Australian Dollar (AUD) depreciates against the US Dollar (USD) on Wednesday, recovering after registering more than 0.50% losses in the previous session. The AUD/USD pair appreciates as the US Dollar extends its decline, pressured by cautious remarks from Federal Reserve (Fed) officials regarding the economic outlook and business sentiment.
NZD/USD
The New Zealand Dollar (NZD) slides lower against the US Dollar (USD) on Tuesday, with NZD/USD slipping to 0.5910 in early American trading hours. The move marks a mild pullback from the previous day’s recovery, as traders react to China’s latest interest rate cut, which raised fresh concerns over slowing growth in the region.
USD/CAD
The USD/CAD pair extends the previous day’s breakdown momentum below a one-week-old trading range and attracts sellers for the third successive day on Wednesday. This also marks the fourth day of a negative move in the previous four and drags spot prices below the 1.3900 mark, or a nearly two-week low during the Asian session.
USD/CHF
The USD/CHF pair continues to lose ground for the third successive day and drops to a two-week low, around the 0.8220-0.8215 region during the Asian session on Wednesday. Moreover, the fundamental backdrop suggests that the path of least resistance for spot prices remains to the downside.
CRUDE OIL
Oil prices jumped more than 1% on Wednesday after reports Israel is preparing a strike on Iranian nuclear facilities, raising fears that a conflict could upset supply availability in the key Middle East producing region.
Gold price sticks to intraday gains above the $3,300 mark, or a one-and-a-half-week high touched during the Asian session on Wednesday, and looks to build on a three-week-old uptrend amid a combination of supporting factors. US fiscal concerns and a downgrade of the US government’s sovereign credit rating last Friday continue to weigh on the USD.
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