EUR/USD is holding onto recovery gains below the 1.0400 mark heading in early Europe. The renewed sell-off in the US Dollar amid the China reopening optimism underpins the Euro. Focus shifts to ECB-speak and Germany’s inflation data.
GBP/USD is cheering a broadly weaker US Dollar amid firmer sentiment while holding higher ground near 1.2000 in early European trading hours. China’s reopening optimism spurs risk flows and boosts the risk-sensitive GBP ahead of Bailey’s testimony and Fedspeak.
The USD/JPY pair has witnessed a rebound after dropping below 138.50 in the Asian session. The rebound seems to lack confidence and is expected to witness fresh selling pressure after dropping below the same. Meanwhile, the risk-off impulse has lost its glory as China has announced stimulus to offset bleak economic projections amid escalating Covid-19 infections.
The AUD/USD pair has witnessed a sheer responsive buying action after dropping to near 0.6640 in the Tokyo session. The Aussie dollar has gained significant strength and has managed to push the asset above the round-level hurdle of 0.6700. Investors’ risk appetite has improved sharply as Chinese marshals are working on restricting protests from individuals against Covid-19 lockdown measures.
NZD/USD snaps a two-day downtrend as it prints 0.75% intraday gains around 0.6205 during early Tuesday morning in Europe. In doing so, the Kiwi pair pays a little heed to the downbeat economic forecasts from the New Zealand Institute of Economic Research (NZIER) amid cautious optimism in the market.
The USD/CAD pair is looking for an immediate cushion after a massive sell-off post failing to sustain above the critical hurdle of 1.3500. The loonie asset is hovering around 1.3433 and is expected to extend its losses towards the 1.3400 mark amid a vertical rally in oil prices. Also, the recovery in the risk-appetite theme is expected to strengthen the Canadian Dollar further.
USD/CHF takes offers to refresh the intraday low near 0.9460 heading into Tuesday’s European session as it snaps the three-day uptrend. Although the risk-on mood seems to weigh on the Swiss Franc (CHF) pair, a cautious mood ahead of the key data/events tests the downside momentum of late.
Oil prices jumped on Tuesday as traders bet that recent weakness in the market will invite more supply cuts by the OPEC, while anti-government protests in China and hawkish signals from the Federal Reserve worsened the outlook for demand.
Gold price picks up bids to reverse the previous day’s losses amid cautious optimism in the financial markets. Easing in China Covid numbers, efforts to defend reality sector join downbeat US Dollar to favor Gold buyers. Hopes of more positives from China signal further upside.
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