In opinion of FX Strategists at UOB Group, EUR/USD risks a deeper pullback on a breach below the 1.1500 mark.
The UK GDP monthly release showed that the economy expanded less-than-expected in August, arriving at 0.4% vs. 0.5% expectations and 0.1% previous.
Meanwhile, the Index of Services (August) came in at 3.7% 3M/3M vs. 1.2% expected and 5.2% prior.
FX Strategists at UOB Group noted USD/JPY could extend the current upside momentum to levels past the 114.00 yardstick.
The cautious policy stance of the Reserve Bank of Australia (RBA) is set to cap further AUD gains. However, economists at Rabobank have upgraded their three-month AUD/USD forecast to 0.72 based on higher commodity prices.
NZD/USD continues to grind lower on Wednesday in the Asian session. The buying pressure in the US dollar keeps NZD/USD edgy.
The USD/CAD pair edges higher in the middle of the week. The pair has remained stuck in a narrow trade band of 1.2440 and 1.2500 for the past three-session.
USD/CHF trades with losses on Wednesday in the initial Asian trading hours. The pair failed to preserve the previous session’s upside momentum.
CME Group’s preliminary figures for crude oil futures markets noted traders added more than 16K contracts to their open interest positions on Tuesday, reversing at the same time two consecutive daily retracements. Volume, instead, diminished by around 335K contracts, the largest single-day drop since August 5.
Gold extends its consolidation beneath the July and August highs at $1832/34. In the view of strategists at Credit Suisse, XAU/USD would suffer a significant drop on a break below $1691/77.