EUR/USD
The EUR/USD resumed its downtrend for the second straight day as market participants digest softer-than-expected economic data from the United States (US). This and the trade agreement of the European Union (EU) and the US boosted the Dollar and weighed on the Euro, which posted a loss of more than 1.30% on Monday, the biggest since December 2024. The pair hovers around 1.1550, down 0.33% daily.
GBP/USD
GBP/USD found some balance on Tuesday, pumping the brakes on an extended backslide but falling just short of snapping its losing streak. The Cable pair caught an intraday technical rebound near the 1.3300 handle, and FX markets are coiling ahead of the Federal Reserve’s (Fed) latest interest rate decision, due on Wednesday.
USD/JPY
USD/JPY is holding lower ground near 148.00 in Wednesday’s Asian trading, following the latest leg down, led by fresh US Dollar selling across the board. Despite Japanese political woes and uncertainty over the BoJ’s next rate hike, the Japanese Yen capitalizes on a cautious mood, adding to the weight on the pair. Fed/ BoJ policy verdicts eyed.
AUD/USD
AUD/USD reverses a dip to near the 0.6500 level, fuelled by the knee-jerk reaction to the softer-than-expected Australian CPI inflation data for June, which flagged RBA rate cut bets. However, a broad US Dollar weakness and Chinese fiscal support measures help cushion the pair’s downside ahead of the crucial US GDP report and the Fed decision.
NZD/USD
The NZD/USD pair extends its downside to around 0.5955 during the early Asian session on Wednesday. Uncertainty surrounding the United States (US) and China tariff truce continues to undermine the China-proxy Kiwi. Investors will closely monitor the US Federal Reserve (Fed) interest rate decision later on Wednesday, with no change in rates expected.
USD/CAD
The USD/CAD pair trades on a flat note near 1.3770 during the early Asian session on Wednesday. Markets might turn cautious later in the day as traders brace for the imminent interest rate decision by the Bank of Canada (BoC) and the US Federal Reserve (Fed).
USD/CHF
The Swiss franc (CHF) loses ground against the US Dollar (USD) on Tuesday, dropping to its lowest level in over a week as renewed strength in the Greenback swept through currency markets. The move came as investors reacted to the newly signed trade agreement between the United States (US)and the European Union (EU).
CRUDE OIL
Oil prices ticked up in early trading on Wednesday after rising more than 3% in the previous session as potential supply shortages came into focus after U.S. President Donald Trump gave Moscow an abbreviated deadline toward ending the war in Ukraine.
Gold price is treading water below the key $3,345 resistance as the US Dollar sellers remain in control ahead of the FOMC decision later this Wednesday. However, the downside appears limited as a cautious market mood offers support to Gold price. The US Q2 GDP report, due later this Wednesday, also remains on tap.
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