EUR/USD is extending recovery gains above 1.0350 in the early European morning this Wednesday. The US Dollar retreats further amid a better market mood. All eyes remain on the Eurozone inflation, US ADP and Fed Chair Powell’s speech.
GBP/USD has sensed responsive buying action around 1.1940 as risk aversion loses luster. The Bank of England is expected to advance its interest rates to 4.25% in Q1CY2023.
USD/JPY remains sidelined around 138.80, despite picking up bids to snap a two-day uptrend during early Wednesday morning in Tokyo. In doing so, the Yen pair portrays the market’s cautious mood ahead of the key catalysts while tracking sluggish US Treasury bond yields.
AUD/USD fails to justify downbeat Australia inflation data, as well as disappointing activity numbers from China, as traders brace for the Federal Reserve (Fed) Chairman Jerome Powell’s speech early Wednesday. That said, the Aussie pair pokes intraday high near 0.9705 during the two-day uptrend.
NZD/USD follows the other Antipodeans to cheer the US Dollar weakness while refreshing intraday high near 0.6235 during the initial hours of Wednesday’s European trading. In doing so, the Kiwi pair pays little heed to the downbeat statistics at home and in China while benefitting from the market’s cautious optimism surrounding Covid conditions.
USD/CAD grinds lower as it prints mild losses while refreshing intraday bottom near 1.3565 during early Wednesday morning in Europe. In doing so, the Loonie pair traces firmer prices of Canada’s main export item, WTI crude oil, while cheering a pullback in the US Dollar ahead of the critical data/events.
USD/CHF treads water at a one-week high surrounding 0.9550 as traders await the key data/events scheduled for publishing on Wednesday. That said, the Swiss Franc (CHF) pair rose during the last four days amid the market’s cautious optimism even as the US Dollar Index (DXY) managed to rebound of late.
Oil prices posted gains of more than 1% in Asian trade on Wednesday on falling U.S. crude inventories and a lower greenback, but concerns OPEC+ will leave output unchanged at its upcoming meeting and weak China data limited gains.
Gold price is looking to build on Tuesday’s recovery gains above $1,750, as traders brace for a busy Wednesday trading, with high-tier United States economic data and Federal Reserve Chair Jerome Powell’s speech to hog the limelight.
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