EUR/USD
The EUR/USD pair loses ground to near 1.1635 during the Asian trading hours on Wednesday. Optimism surrounding US-China trade deals weighs on the riskier currency, like the Euro (EUR) against the US Dollar (USD). Traders brace for the Federal Reserve (Fed) interest rate decision later on Wednesday. On Thursday, the attention will shift to the European Central Bank monetary policy meeting.
GBP/USD
GBP/USD loses ground for the second successive session, trading around 1.3250 during the Asian hours on Wednesday. The pair weakens as the Pound Sterling (GBP) declines following data from the British Retail Consortium (BRC) showing UK food prices falling at the fastest pace in nearly five years, strengthening expectations of upcoming Bank of England (BoE) rate cuts.
USD/JPY
The Japanese Yen (JPY) attracts some intraday sellers following an Asian session uptick on Wednesday, which, along with some US Dollar (USD) buying, assists the USD/JPY pair to recover nearly 100 pips from the vicinity of mid-151.00s. Expectations that the Bank of Japan (BoJ) could resist early tightening in the wake of Japan’s new Prime Minister Sanae Takaichi’s aggressive fiscal spending plans keep a lid on any meaningful JPY gains. Furthermore, the US-China trade optimism turns out to be another factor undermining demand for traditional safe-haven assets, including the JPY, amid some repositing trade ahead of the crucial FOMC decision.
AUD/USD
Markets are fully pricing in a 25 bps rate cut, with traders positioning for a dovish shift. Any hint from Powell that this marks the start of an easing cycle could further pressure the U.S. dollar, reinforcing AUD/USD’s upward trajectory. A stronger CPI print curbs the odds of an RBA rate cut, maintaining higher yield appeal for the AUD relative to other majors. This divergence strengthens the fundamental case for continued AUD/USD upside.
NZD/USD
The NZD/USD pair touches a nearly three-week high during the Asian session on Wednesday, though it lacks follow-through buying and remains below the 0.5800 round figure. The fundamental backdrop, however, seems tilted in favor of bulls and backs the case for an case for an extension of the recent goodish recovery move from the 0.5730-0.5725 region, or the lowest level since April touched earlier this month.
USD/CAD
USD/CAD extends its losses for the third successive day, trading around 1.3940 during the Asian hours on Wednesday. The pair depreciates as the US Dollar (USD) remains subdued ahead of the US Federal Reserve (Fed) policy decision due later in the day.
USD/CHF
The USD/CHF pair rises slightly to near 0.7940 during the late Asian trading session on Wednesday. The Swiss Franc pair gains as the US Dollar (USD) trades marginally higher ahead of the monetary policy announcement by the Federal Reserve (Fed) at 18:00 GMT.
CRUDE OIL
West Texas Intermediate (WTI) US Oil drops 2.55% on Tuesday, trading around $59.80 at the time of writing. Crude Oil prices come under pressure after reports that the Organization of the Petroleum Exporting Countries and its allies (OPEC+) plan to increase production starting in December.
Gold (XAU/USD) struggles to capitalize on the overnight bounce from an over three-week trough and seesaws between tepid gains/minor losses through the Asian session on Wednesday. Traders now seem reluctant and opt to wait for the highly anticipated FOMC policy decision, scheduled to be announced later today, before placing fresh directional bets around the non-yielding yellow metal. In the meantime, the emergence of some US Dollar (USD) buying acts as a headwind for the commodity.
Any information provided therein are indicative and subjective to the technical analysis method or trading patterns used and the timing of their release. Those are provided as general market information and/or market commentary and/or the publication of market/factual data and should not be construed as containing personal and/or other investment recommendation, and/or to be Investment Advice or independent Investment Research. As such, the legal and regulatory requirements in relation to independent investment research do not apply to this material and it is not subject to any prohibition on dealing ahead of its dissemination. For the full Risk Disclaimer click here.
