The EUR/USD pair has extended its lackluster performance in the Tokyo session as investors are awaiting the announcement of the interest rate decision by the ECB. In addition to the ECB policy, the US GDP data also carries the utmost importance.
GBP/USD pauses two-day bullish momentum, as the US dollar attempts a comeback. Markets turn cautious amid mixed headlines on the upcoming UK fiscal plan.
The USD/JPY pair has dropped sharply to 146.00 in the Asian session, following the bearish cues from the US dollar index (DXY). The asset has continued its two-day losing streak after surrendering Wednesday’s low at 146.22. The major is declining towards the low of knee-jerk reaction recorded on Monday to near 145.77.
The Australian dollar outperformed major counterparts through trade on Wednesday amid sustained US dollar selling pressure. Price action through the domestic session was largely contained as the AUD struggled to break clear of US$0.64 despite a much stronger-than-anticipated inflation shock. Quarterly CPI inflation reached a 32-year high, with headline inflation up 7.3% and core inflation surging past 6%. Markets were well positioned and prepared for a positive surprise, and price action was restrained.
The NZD/USD pair has given a north-side break of the consolidation formed in a narrow range of 0.5818-0.5850 in the Tokyo session. The asset is advancing firmly and has refreshed its day’s high at 0.5860 as the market sentiment has rebounded firmly.
The USD/CAD pair has turned sideways after a wild gyration in a 1.3533-1.3650 range in the late Tokyo session. The asset displays a rangebound structure in a 1.3545-1.3582 area in Asia. The major is expected to remain lackluster ahead of the release of the US critical data.
The US dollar resumed its downtrend against the Swiss franc on Wednesday. The mild recovery attempt witnessed during the European session has been capped at 0.9930, and the pair gave away gains, later on, to test the 0.9855 area at the moment of writing.
Oil prices rose on Thursday, extending a more than 3% rally in the previous session, boosted by record U.S Crude exports and a weaker U.S. dollar, though gains were capped in Asia due to lingering fears over slack demand in China.
Gold price is looking for a clear directional bias, stalling a two-day upswing towards $1,700, as investors brace for critical events this Thursday. The US dollar is recovering a bit of ground across the board after the relentless sell-off seen so far this week.
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