EUR/USD is marching towards 1.0000 parity on soaring ECB hawkish bets. Russia has cut off the energy supply to Eurozone citing western sanctions. The DXY has turned volatile amid weaker estimates for US ISM Services PMI.
GBP/USD takes the bids to refresh intraday high around 1.1590 as bulls welcome Lizz Truss’s leadership amid hopes of heavy stimulus and a push to the Bank of England (BOE). With this, the Cable pair leads the G10 currency pairs while posing 0.65% intraday gains during Tuesday’s Asian session.
The USD/JPY pair is displaying a lackluster performance in the early Tokyo session as investors are awaiting the release of the US ISM services PMI data. The asset is displaying back-and-forth moves in a narrow range of 140.53-140.60. On Monday, the asset printed a fresh 24-year high at 140.80. However, a follow-up momentum loss structure is indicating that investors are discounting lower consensus for the US ISM Services PMI data.
AUD/USD is defending mild gains above 0.6800, reversing a brief dip after the RBA announced the expected 50 bps rate hike and said it remains data-dependent on the future policy outlook. A weaker US dollar and cautious optimism underpin the aussie ahead of ISM.
NZD/USD picks up bids to 0.6105 as it extends Friday’s corrective pullback from the seven-week low to print a three-day uptrend during Tuesday’s Asian session. In doing so, the Loonie pair cheers a retreat in the US Dollar Index (DXY) while ignoring downbeat signals from the options market.
The USD/CAD pair has picked bids around 1.3100 after displaying a meaningful decline in the Asian session. A rebound attempt in the asset is highly needed to be on the watchlist as it could be a short-lived pullback. The asset is expected to remain volatile as investors are awaiting the release of the US ISM Services PMI after an extended weekend in the US markets.
USD/CHF remains pressured near the intraday low of 0.9785 during Tuesday’s initial Asian session. In doing so, the Swiss currency (CHF) pair portrays a three-day downtrend while extending Friday’s pullback from the highest levels since mid-July.
The Organization of Petroleum Exporting Countries and its allies led by Russia (OPEC+) said during a meeting on Monday that it will cut output by 100,000 barrels per day (bpd) for October- roughly 0.1% of global demand. The move comes shortly after the cartel raised supply to pre-COVID levels this year. But fears of slowing economic growth across the globe have battered oil prices in recent months.
Gold price portrays a corrective pullback as bulls retreat from intraday high to around $1,720 during early Tuesday morning in Europe. While technical hurdles and doubts over the early Asian session optimism probe the metal buyers of late.
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