EUR/USD
The EUR/USD pair extends its upside to around 1.1635 during the Asian trading hours on Wednesday. Signals that the European Central Bank (ECB) is done cutting interest rates provide some support to the Euro (EUR) against the US Dollar (USD). ECB President Christine Lagarde noted last week that borrowing costs are at the “right level.”
GBP/USD
The GBP/USD pair gains traction to near 1.3235 during the early European session on Wednesday. The US Dollar (USD) remains weak against the Pound Sterling (GBP) amid growing expectations that the US Federal Reserve (Fed) will deliver a 25 basis points (bps) interest rate cut at its upcoming meeting next week.
USD/JPY
The USD/JPY pair struggles to capitalize on the previous day’s move higher to levels beyond the 156.00 mark and edges lower during the Asian session on Wednesday. Spot prices currently trade around the 155.75 region, though the downtick lacks follow-through or a bearish conviction.
AUD/USD
The Australian Dollar (AUD) builds on its intraday ascent against a broadly weaker US Dollar (USD), pushing the AUD/USD pair to a fresh high since late October and closer to the 0.6600 mark heading into the European session on Wednesday. The initial market reaction to the disappointing Australian economic growth figures turns out to be short-lived amid diminishing odds for more policy easing by the Reserve Bank of Australia (RBA). This, in turn, is seen as a key factor that continues to underpin the AUD.
NZD/USD
The NZD/USD pair gathers strength near 0.5745 during the Asian trading hours on Wednesday. The New Zealand Dollar (NZD) edges higher against the US Dollar (USD) after the Chinese economic data. Traders await the release of the US ADP Employment Change and ISM Services Purchasing Managers Index (PMI) data later on Wednesday for fresh impetus.
USD/CAD
The USD/CAD pair trades cautiously near 1.3960 during the European trading session on Wednesday. The Loonie pair struggles to gain ground as the US Dollar (USD) is under pressure, following hints from United States (US) President Donald Trump that White House Economic Adviser Kevin Hassett could be the successor of Federal Reserve (Fed) Chair Jerome Powell when his term ends in May 2026.
USD/CHF
The US Dollar remains practically flat around 0.8050 on Wednesday after whipsawing between 0.8070 and 0.8000 over the previous two trading days. The immediate trend remains bearish, from 0.8100 highs, but the long wicks in the daily chart highlight an indecisive market, and technical indicators support that view.
CRUDE OIL
Oil prices slipped for a second consecutive session on Wednesday, as traders awaited the outcome of Russia-Ukraine peace talks that could boost supply, while concerns over a potential surplus grew amid rising inventories.
Gold (XAU/USD) struggles to capitalize on a modest intraday move up and retreats to the lower end of its daily range heading into the European session on Wednesday. A generally positive tone around the equity markets is seen as a key factor acting as a headwind for the safe-haven precious metal. Furthermore, bulls opt to wait for important US macro releases for more cues about the Federal Reserve’s (Fed) rate-cut path and placing fresh bets around the non-yielding yellow metal.
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