EUR/USD
The EUR/USD pair gains traction to near 1.1915 during the early European session on Wednesday, bolstered by a weaker US Dollar (USD). Markets might turn cautious later in the day ahead of the delayed US employment report for January, which will offer clues on the path of Federal Reserve (Fed) policy.
GBP/USD
GBP/USD pulled back on Tuesday after Monday’s strong bounce from the 1.3510 low, closing at 1.3641, down 0.39% on the session. The daily chart shows the pair gave back gains from a high of 1.3700, printing a bearish candle that suggests the recovery from Friday’s two-week low is losing steam near the 50% Fibonacci retracement of the 1.3869 to 1.3510 decline (around 1.3690). The broader structure is still bullish, with price holding well above the 50 Exponential Moving Average (EMA) at 1.3512 and the 200 EMA at 1.3352, but the sharp selloff from the late-January high of 1.3869 has carved out a lower high pattern that threatens the uptrend. Bank of England (BoE) dovishness following last week’s 5-4 split hold at 3.75%, combined with growing UK political uncertainty around Prime Minister Starmer’s leadership, continue to weigh on Pound Sterling. The Stochastic Oscillator (14, 5, 5) reads 51.21/57.04, with %K crossing below %D in neutral territory, pointing to weakening momentum heading into Wednesday’s session.
USD/JPY
The USD/JPY pair remains on the back foot below mid-154.00s through the Asian session on Wednesday and looks to build on its heavy losses registered over the past two days. Traders, however, seem reluctant and might opt to wait for the delayed release of the US monthly employment details.
AUD/USD
The AUD/USD pair catches fresh bids following the previous day’s modest slide and climbs to a fresh high since February 2023, beyond the 0.7100 mark during the Asian session on Wednesday. China’s unimpressive inflation figures reinforced concerns that deflationary pressures continue to weigh on the world’s second-largest economy and raised hopes for more fiscal stimulus. This, along with the Reserve Bank of Australia’s (RBA) hawkish stance and a positive risk tone, continues to act as a tailwind for the Aussie.
NZD/USD
The NZD/USD pair regains positive traction following the previous day’s modest decline and climbs to a nearly two-week high during the Asian session on Wednesday. Spot prices currently trade around the 0.6065 region and seem poised to climb further amid a bearish US Dollar (USD), though traders might opt to wait for the release of the US Nonfarm Payrolls (NFP) report.
USD/CAD
The USD/CAD pair trades in negative territory for the fourth consecutive day near 1.3550 during the early Asian session on Wednesday. Higher crude oil prices continue to underpin the commodity-linked Canadian Dollar (CAD) against the Greenback. All eyes will be on the delayed US jobs data for January, which is due later on Wednesday.
USD/CHF
USD/CHF depreciates after registering modest gains in the previous session, trading around 0.7660 during the Asian hours on Wednesday. The pair weakens as the US Dollar (USD) extends its decline, with investors remaining cautious ahead of the delayed US employment report due Wednesday, which is expected to provide fresh clues on the US interest rate outlook.
CRUDE OIL
Oil prices gained on Wednesday, buoyed by escalating risk as U.S.–Iran talks remained tenuous, while signs of an easing surplus spurred by better demand support from India also added strength.
Gold (XAU/USD) sticks to modest intraday gains above the $5,050 level heading into the European session on Wednesday. Bets for more rate cuts by the US Federal Reserve (Fed) drag the US Dollar (USD) to a nearly two-week low and turn out to be a key factor acting as a tailwind for the non-yielding yellow metal. However, the underlying bullish sentiment might cap the upside for the safe-haven commodity. Bullish traders might also opt to wait for the release of the US Nonfarm Payrolls (NFP) report before positioning for any further gains.
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