EUR/USD is trading higher above 1.1250, as the US dollar eases amid repositioning ahead of the Fed verdict. Super Thursday will be a critical day for the euro with the ECB meeting. Central bank divergence themes will be a driving force for the pair.
GBP/USD edged higher in the early European session after the UK’s Office for National Statistics reported that the Consumer Price Index jumped to 5.1% on a yearly basis in November from 4.2% in October. This reading surpassed the market expectation of 4.7% and the pair retreated following a spike above 1.3250.
USD/JPY takes a U-turn from intraday high to challenge the previous two-day uptrend, down 0.03% on a day around 113.70 during the initial Tokyo trading on Wednesday. The risk barometer pair’s latest weakness could be linked to the Omicron fears and the market’s anxiety ahead of today’s US Federal Reserve (Fed) monetary policy meeting.
The AUD/USD pair maintained its bid tone through the early European session and was last seen trading near the daily high, around the 0.7120-25 region.
NZD/USD extends intraday bounce from YTD low, moves back above mid-0.6700s.
USD/CAD remains sidelined near the highest levels since September, recently picking up bids to 1.2855 as traders brace for Wednesday’s bell in Brussels.
USD/CHF trades with modest gains, remains below mid-0.9200s ahead of FOMC
WTI refreshes intraday low, near to the weekly bottom of $69.33, while taking offers near $69.45 during early Wednesday morning in Europe.
The hawkish Fed expectations are undermining gold price heading into the policy announcements this Wednesday. Gold price is hovering near its two-week lows, with its fate hinging on the Fed’s pace of tapering.
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