EUR/USD
The EUR/USD pair gains ground to near 1.1620 during the Asian trading hours on Wednesday. The US Dollar (USD) softens against the Euro (EUR) after remarks from Federal Reserve (Fed) Chair Jerome Powell bolstered wagers on an interest rate cut this month. The Eurozone Industrial Production data for August is due later on Wednesday.
GBP/USD
GBP/USD recovers its losses registered in the previous two successive sessions, trading around 1.3350 during the Asian hours on Wednesday. The pair appreciates as the US Dollar (USD) declines on the increased likelihood of further rate cuts by the Federal Reserve (Fed) in 2025. CME FedWatch Tool indicates that markets are now pricing in nearly a 94% chance of a Fed rate cut in October and a 93% possibility of another reduction in December.
USD/JPY
The Japanese Yen (JPY) scales higher for the second straight day against a broadly weaker US Dollar (USD) and climbs to a one-week top during the Asian session on Wednesday. Shifting US-China trade dynamics, geopolitical tensions, and concerns about a prolonged US government shutdown continue to underpin demand for safe-haven assets, including the JPY. Furthermore, the recent comments from Finance Minister Katsunobu Kato fueled speculations about a possible government intervention to stem any further JPY weakness and remain supportive.
AUD/USD
The Australian Dollar (AUD) advances against the US Dollar (USD) on Wednesday, recovering its recent losses registered in the previous session. The AUD/USD pair appreciates as the AUD receives support from the cautious remarks from the Reserve Bank of Australia (RBA) Assistant Governor Sarah Hunter, who said that recent data has been a little stronger than expected, adding that inflation is likely to be stronger than forecast in the third quarter (Q3).
NZD/USD
The NZD/USD pair gains ground near 0.5720 during the Asian trading hours on Wednesday. Nonetheless, softer-than-expected Chinese consumer prices and rising trade tensions between the United States and China might cap the upside for the China-proxy New Zealand Dollar (NZD).
USD/CAD
USD/CAD loses ground after two days of gains, trading around 1.4030 during the Asian hours on Wednesday. The pair loses ground as the US Dollar (USD) declines after the dovish Fedspeak. Traders will likely observe speeches from US Federal Reserve (Fed) officials, including Stephen Miran, Christopher Waller, and Jeff Schmi,d later in the day.
USD/CHF
USD/CHF stayed under pressure on Tuesday, with the pair hovering around 0.8030 following weaker-than-expected inflation data from Switzerland. Risk aversion, fueled by prolonged concerns over the US government shutdown and renewed US-China trade tensions, continues to support demand for the safe-haven Swiss Franc (CHF).
CRUDE OIL
Oil prices fell in early trade on Wednesday, extending losses from the previous session, as investors weighed the International Energy Agency’s warning of a supply surplus in 2026 and U.S.-China trade tensions that could hurt demand.
Gold is off the record highs, but buyers retain control amid a broadly weaker US Dollar. Renewed US-China trade tensions, bets for two more Fed rate cuts offset upbeat IMF global growth outlook. Gold challenges the upper boundary of a rising channel on the daily chart, with RSI still heavily overbought.
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