EUR/USD is consolidating below 0.9900, as buyers struggle to keep the reins in early Europe. The pair is drawing support from the renewed weakness in the US dollar alongside the yields. Investors trade with caution ahead of the Fed rate hike decision.
GBP/USD is hovering around 1.1500 in early European trading hours amid cautious optimism. The US dollar remains pressured, weighed down by weaker Treasury yields, as investors brace for the expected 75 bps Fed rate hike decision.
USD/JPY stands on slippery grounds near 147.80 even as the Bank of Japan’s (BOJ) monetary policy meeting minutes defend the easy money policies during early Wednesday. In doing so, the yen pair renews its intraday low while declining for the second consecutive day as traders prepare for the all-important Federal Open Market Committee (FOMC) meeting.
AUD/USD remains mildly bid around 0.6400, refreshing intraday high to 0.6407 by the press time, as the US dollar eases ahead of the Fed’s verdict on Wednesday.
NZD/USD prints mild losses around 0.5830, failing to reverse the late Tuesday’s pullback from a six-week high after an initial uptick post-New Zealand’s (NZ) third quarter (Q3) employment data released on early Wednesday. In addition to the mixed job numbers, the market’s anxiety ahead of the all-important Federal Open Market Committee (FOMC) meeting also challenges the Kiwi pair.
The Canadian dollar was little changed following the Bank of Canada (BoC) Governor Tiff Macklem’s comments whereby he said he expects the policy rate will need to rise further. At the time of writing, USD/CAD is trading at 1.3628 after moving within a range of 1.3622 and 1.3635.
The US dollar has retraced previous losses against the Swiss Franc on Tuesday’s US session, jumping from levels nearing 0.9900, back beyond 1.0000 on the back of a series of better-than-expected US macroeconomic figures.
Oil prices rose more than 1% on Wednesday after industry data showed a surprise drop in U.S. crude inventories, suggesting demand is holding up despite steep interest rate hikes dampening global growth.
Gold price is clinging onto the recent recovery gains near $1,650 on the US Federal Reserve (Fed) day, as investors turn cautious and refrain from placing any fresh bets on the US Dollar and the yellow metal.
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