EURUSD is finding fresh demand while eyeing 1.0400, as the US Dollar recovery fizzles on US President Biden’s denial of Russian involvement in the missile striking Poland. The Fed-ECB policy divergence remains in play ahead of the US Retail Sales and ECB Lagarde’s speech.
GBPUSD is defending minor bids above 1.1850, as investors turn cautious ahead of the UK inflation data. The UK CPI is expected to surge by 10.7% YoY in October. The US Dollar trades choppy amid stabilizing risk tone as investors digest Ukraine-Poland geopolitical news.
The USDJPY pair has extended its recovery after overstepping the critical hurdle of 139.50 in the Asian session. The asset has refreshed its day’s high at 140.20 despite a rangebound performance by the US dollar index (DXY). Further development on Russia-Poland noise has sidelined the market mood.
AUDUSD grinds higher around the intraday top but stays mostly unchanged on a day as the quote seesaws around 0.6760 heading into Wednesday’s European session.
The NZDUSD pair is witnessing a volatility contraction around the crucial hurdle of 0.6150 in the early Asian session. The asset witnessed an escalation in standard deviation on Tuesday after Poland’s economy reported an attack by Russian rebels through two stray missiles. This led to a resurgence in the risk-off mood, however, the overall optimism regained glory.
The USDCAD pair has turned sideways below the 1.3300 mark in the Tokyo session. A significant recovery in oil prices caps the upside in the asset, while geopolitical tensions between Russia and Poland cushion the downside after Russian military attacks. On a broader note, the asset oscillates in a 1.3248-1.3336 range ahead of Canada’s Consumer Price Index (CPI) data.
The USDCHF pair is witnessing rangebound moves above the immediate mark of 0.9400 in early Asia. The asset has been trading in a tight range as a rebound in negative market sentiment after geopolitical tensions between Russia and Poland is supporting from the floor while hawkish guidance from Swiss National Bank (SNB) Chairman Thomas J. Jordan is capping the upside.
Oil prices slid on Wednesday as COVID-19 cases in China continued to climb, sparking worries of lower fuel demand in the world’s top crude importer that outweighed concerns about an escalation of geopolitical tensions and tighter oil supply.
Gold price is extending its pullback from a new three-month high of $1,787, snapping its four-day bullish momentum so far this Wednesday. Investors digest the latest geopolitical headlines surrounding Poland while awaiting the critical Retail Sales data from the United States.
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