EUR/USD is consolidating the rebound near 1.0150 as the dollar sees renewed weakness amid a rally in the US stock futures. Pre-Fed anxiety and the European gas crisis are likely to keep the upside elusive in the pair.
GBP/USD is looking to extend the recovery towards three-week highs of 1.2091 amid a broadly weaker US dollar and cautious optimism. Investors shrug off recession fears, as attention turns towards the US data and Fed rate hike decision.
USD/JPY justifies the recent bearish Doji as it pares intraday gains around 136.95 during early Wednesday morning in Europe.
The AUD/USD pair has picked bids around 0.6920 after plummeting from near 0.6960 in the Asian session. The asset is regaining strength as investors have digested the volatility produced after the release of the Australian inflation data.
The NZD/USD pair has turned sideways after a modest recovery from the intraday low at around 0.6230. The asset has defended Tuesday’s low at 0.6224 and is likely to extend its recovery as the US dollar index (DXY) is looking downside for an establishment.
USD/CAD reverses the previous day’s corrective pullback from the 1.5-month low heading into Wednesday’s European session. In doing so, the Loonie pair takes clues from the softer US dollar, as well as justifies the recent improvement in the prices of Canada’s key export item WTI crude oil.
USD/CHF remains on the back foot around 0.9625-20 during Tuesday’s Asian session, following the seller’s re-entry from 0.9667 the previous day. Despite the broad US dollar strength, the pair stays heavy due to the Swiss Franc’s (CHF) safe-haven nature.
Oil prices held steady on Wednesday as concerns about weaker demand offset industry data that showed a larger-than-expected drawdown in U.S. crude stockpiles.
Gold price is trading listlessly amid a tepid market mood on Fed day so far, holding the lower ground of this week’s trading range. Markets remain on a cautious footing ahead of the all-important Fed rate decision and planned Xi-Biden talks.
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