EUR/USD
EUR/USD gains ground after registering minor losses in the previous day, trading around 1.1640 during the Asian hours on Wednesday. The pair gains upward momentum, heavily supported by a wave of hawkish sentiment surrounding the European Central Bank’s (ECB) monetary policy outlook. ECB policymaker Francois Villeroy de Galhau reinforced this stance on Tuesday, emphasizing that the central bank “will do what is necessary” to successfully keep inflation on target.
GBP/USD
The GBP/USD pair attracts some dip-buyers during the Asian session on Wednesday and stalls the previous day’s retracement slide from the vicinity of a nearly two-week top, levels just above the 1.3500 psychological mark. Spot prices currently trade just above mid-1.3400s, though the upside potential seems limited amid persistent geopolitical uncertainties.
USD/JPY
The USD/JPY pair recovers some ground on Tuesday, rising over 0.25% as buyers ignore the intervention zone, clearing 159.00 and aiming to challenge the 159.50 area. At the time of writing, the pair trades at 159.38.
AUD/USD
AUD/USD extends its gains for the second successive day, trading around 0.7160 during the Asian hours on Wednesday. The pair declines as the Australian Dollar (AUD) loses ground following the release of domestic inflation data.
NZD/USD
The NZD/USD pair attracts some buyers to near 0.5870 during the Asian trading hours on Wednesday. The New Zealand Dollar (NZD) edges higher against the US Dollar (USD) after the Reserve Bank of New Zealand (RBNZ) interest rate decision.
USD/CAD
The US Dollar (USD) is trading practically flat against the Canadian Dollar (CAD) on Wednesday, consolidating gains above 1.3800 at the time of writing, after having rallied about 1.7% over the previous three weeks. The recent pullback in Crude prices has weighed on the commodity-sensitive Loonie, which is looking for direction this week, as investors await developments from the US-Iran peace process.
USD/CHF
The USD/CHF pair edges higher to near 0.7830, snapping the four-day losing streak, during the early European session on Tuesday. Uncertainty surrounding the US-Iran peace negotiations provides some support to the US Dollar (USD) against the Swiss Franc (CHF).
CRUDE OIL
Oil prices pulled back from recent highs on Wednesday, erasing some of the previous day’s 4% gain as traders sought clarity on complex negotiations between Iran and the U.S. after renewed hostilities set back efforts to reopen the Strait of Hormuz.
Gold (XAU/USD) remains on the back foot heading into the European session on Wednesday and seems vulnerable near the $4,500 psychological mark as persistent geopolitical uncertainties continue to support the safe-haven US Dollar (USD). Moreover, inflationary concerns have raised expectations for more hawkish central banks, including the US Federal Reserve (Fed), further validating the negative outlook for the yellow metal.
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