EUR/USD
EUR/USD continues its losses for the second successive day, trading around 1.1310 during the Asian hours on Wednesday. The pair depreciates as the US Dollar draws support and as US yields depreciate following Japan’s indication of potential cuts in government debt issuance, which has boosted global bond markets.
GBP/USD
The GBP/USD pair attracts some sellers to around 1.3480 during the Asian trading hours on Wednesday. The Greenback strengthens against the Pound Sterling on the economic signs in the United States. Data released by the Conference Board on Tuesday showed that the US Consumer Confidence Index rose to 98.0 in May from 86.0, and the Minutes of the FOMC will take center stage later on Wednesday.
USD/JPY
The Japanese Yen (JPY) remains on the back foot against a broadly recovery US Dollar (USD) and currently trades near its lowest level in more than a week touched during the Asian session this Wednesday. Speculations that the government will take some action to curb the recent sharp rise in Japanese bond yields, along with a generally positive risk tone, turn out to be key factors undermining the JPY. Furthermore, Tuesday’s upbeat US macro data pushes the USD higher for the second straight day and assists the USD/JPY pair to build on the overnight strong recovery move from the monthly low, around the 142.10 area.
AUD/USD
The Australian Dollar (AUD) extends its losses against the US Dollar (USD) on Wednesday for the third successive session. The AUD/USD pair loses ground after the release of the Monthly Consumer Price Index (CPI). However, the Australian Bureau of Statistics reported that monthly inflation, in the price of a fixed basket of goods and services acquired by household consumers, steadied at 2.4% year-over-year in April, surpassing the expected 2.3% increase.
NZD/USD
NZD/USD recovers its recent losses from the previous session, trading around 0.5970 during the Asian hours on Wednesday. The pair appreciates as the New Zealand Dollar (NZD) gains ground following the Reserve Bank of New Zealand’s (RBNZ) interest rate decision.
USD/CAD
The USD/CAD pair is seen prolonging this week’s goodish recovery move from the 1.3685 area, or its lowest level since October 2024, for the third consecutive day on Wednesday. Spot prices currently trade near the weekly top, around the 1.3835-1.3840 region, up nearly 0.30% for the day amid some follow-through US Dollar (USD) buying.
USD/CHF
The USD/CHF pair gains ground to near 0.8285 during the early European session on Wednesday. Better-than-expected US Consumer Confidence data and improved risk sentiment provide some support to the US Dollar (USD). Traders brace for the Swiss ZEW Survey and the Minutes of the Federal Open Market Committee (FOMC), which will be released later on Wednesday.
CRUDE OIL
Oil prices inched up on Wednesday as investors considered supply risks after the U.S. barred Chevron (NYSE:CVX) from exporting crude from Venezuela under a new asset authorisation, though expectations of more output from OPEC+ continued to limit gains.
Gold price struggles to capitalize on a modest Asian session uptick and currently trades just below the $3,300 mark, close to the weekly low touched the previous day. Better-than-expected US economic data released on Tuesday calmed recession fears and assisted the US Dollar in attracting buyers for the second straight day.
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