EUR/USD
EUR/USD pulls back from two-week highs of 1.1761 reached on Tuesday, approaching 1.1700 in the early European hours on Wednesday. The pair loses ground as the US Dollar finds demand on trade optimism. US President Trump announced a trade deal with Japan that includes 15% tariffs on Japanese imports.
GBP/USD
The GBP/USD pair extends the rally to near 1.3525 during the early European session on Wednesday. The risk-on mood provides some support to the riskier currency, like the Pound Sterling (GBP). Investors will keep an eye on the preliminary reading of UK Purchasing Managers Index (PMI) reports, which are due later on Thursday.
USD/JPY
USD/JPY has regained traction above 147.00 in early Europe on Wednesday. The pair reverses the dip to 146.20, led by US President Trump’s announcement of a trade deal with Japan. The trade deal optimism lends support to the US Dollar while reports of Japan’s PM Ishiba resigning in August smash the local currency.
AUD/USD
The Australian Dollar (AUD) gains ground against the US Dollar (USD) on Wednesday, extending its winning streak for the fourth successive session. The AUD/USD pair appreciates amid improving market sentiment, driven by the US President Donald Trump’s announcement of a major tariff deal with Japan, which includes a 15% tariff on Japanese exports. Additionally, talks between the United States (US) and China are gaining momentum ahead of the August 12 deadline.
NZD/USD
The NZD/USD pair trades in positive territory for the fourth consecutive day near 0.6005 during the Asian trading hours on Wednesday. Renewed concerns over the US Federal Reserve (Fed) independence drag the US Dollar (USD) lower against the New Zealand Dollar (NZD).
USD/CAD
The USD/CAD pair enters a bearish consolidation phase during the Asian session and oscillates in a narrow trading band around the 1.3600 mark, near a two-week low touched earlier this Wednesday.
USD/CHF
The USD/CHF seems vulnerable near an over two-week low around 0.7940 during the late Asian trading session on Wednesday. The Swiss Franc pair faces selling pressure as the US Dollar (USD) underperforms despite Washington announcing that it has signed trade deals with Japan, and Philippines.
CRUDE OIL
Oil prices edged up in Asian trade on Wednesday after falling for three consecutive sessions as a U.S. with Japan signalled progress on tariffs, though gains were capped by fading hopes for a breakthrough at an EU-China summit.
Gold price drifts lower after rising to over a one-month peak during the Asian session. A modest USD bounce and a positive risk tone seem to undermine the precious metal. The uncertainty over the Fed’s rate-cut path warrants some caution for the USD bulls.
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