EUR/USD clings onto recent gains above 1.0300 in early European trading, as traders await the Euro area preliminary PMIs for fresh impetus. The US Dollar licks its wounds, despite a cautious market mood. US data and Fed minutes eyed as well.
GBP/USD is holding steady below 1.1900, struggling in the early European morning. The US Dollar repositions ahead of the top-tier US economic data and the Fed November meeting minutes. China’s covid woes and renewed Brexit updates keep investors on the edge.
USD/JPY is on the back foot and is testing 141.00 with a low of 140.90 so far. The US Dollar retreated across the board on Tuesday and remains on the offer in Asia. Investors are looking past worries about China’s COVID flare-ups ahead of Wednesday’s Federal Open Market Committee Minutes.
The AUD/USD pair trades around 0.6640 at the end of the American session, up modest 50 pips on Tuesday. The pair made most of its intraday progress during European trading hours, holding steady in the US session despite the better tone of Wall Street and steady US Treasury yields. US indexes were firmly up after starting the week on the back foot, while the yield on the 10-year Treasury note ticked lower and currently stands at around 3.75%.
NZD/USD pares the Reserve Bank of New Zealand (RBNZ) inspired gains as it retreats to 0.6160 heading into Wednesday’s European session. In doing so, the New Zealand Dollar (NZD) struggles to cheer hawkish moves of the RBNZ amid mixed sentiment and cautious mood ahead of the key data/events.
USD/CAD picks up bids to refresh intraday high near 1.3380 during early Wednesday. The Loonie pair’s latest rebound could be linked to the market’s sour sentiment, as well as a pause in the WTI crude oil’s recovery moves. However, a cautious mood ahead of the key data/events challenges the pair buyers.
USD/CHF holds lower ground near 0.9515 following the first daily negative in seven. Cautious market mood for the US Dollar.
Oil prices were steady on Wednesday as concerns about lower fuel demand from China amid tightening COVID-19 curbs offset data showing a larger-than-expected U.S. crude draw last week.
Gold price has dropped to near three-day’s low around $1,730.00 ahead of FOMC minutes. The precious metal has sensed selling pressure. The risk impulse is displaying mixed responses ahead of the Fed minutes.
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