EUR/USD takes offers to refresh multi-year low during seven-day downtrend. US Treasury yields rally to fresh cycle highs amid fears of economic slowdown, hawkish central banks. Energy crisis in Eurozone joins fears of more drama on the Russia-Ukraine issue to keep bears hopeful.
GBP/USD remains on the back foot while reversing the previous day’s corrective bounce, taking offers near 1.0630 during early Wednesday morning in Europe. The Cable pair respects the US dollar’s latest run-up amid the rush for risk safety, as well as downbeat economic prospects for the UK.
USD/JPY skates on thin ice in the last two days, taking rounds to 144.70 during early Wednesday morning in Europe. In doing so, the yen pair fails to tracks the firmer US Treasury yields and the US Dollar Index (DXY) while also paying a little heed to the risk-off mood. The reason could be linked to the Bank of Japan’s (BOJ) latest monetary policy meeting and the BOJ’s Japanese Government Bond (JGB) buying activity.
AUD/USD takes offers to refresh 28-month low around 0.6400, down for the fourth consecutive day to early Wednesday morning in Europe.
The NZD/USD pair has displayed a minor pullback move after refreshing its two-year low at 0.5565 in the Tokyo session. The pullback move doesn’t stem from an accumulation base and is expected to conclude sooner, which will trigger further downside in the asset. In early Asia, the asset displayed a bearish open-drive session, which dragged the asset firmly.
The USD/CAD pair is marching north to recapture a fresh two-year high around 1.3800 in the Tokyo session. The asset has resumed its upside journey after a minor correction to near 1.3640 and is expected to refresh its two-year high above 1.3800 in the coming sessions. The major concluded its corrective move after the release of upbeat US Consumer Confidence data.
USD/CHF adds more than what’s lost the previous day as it rises towards the weekly top, the same as the 3.5-month high, heading into Wednesday’s European session. That said, the Swiss currency (CHF) pair gains 0.30% intraday around 0.9950 by the press time.
Oil prices fell more 1% on Wednesday, pressured by a strengthening dollar and crude storage builds that offset support from U.S. production cuts caused by Hurricane Ian.
Gold staged a modest recovery from its lowest level since April 2020 touched on Tuesday, though lacked any follow-through buying. An intraday US dollar downtick was seen as a key factor that offered some support to the dollar-denominated commodity.
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