EUR/USD is trading sideways near the 1.0450 region in the early European session. The pair is feeling the pull of gravity amid firmer US Dollar and Treasury yields. Growing recession fears offset China’s covid easing. Focus shifts to EU data.
The GBP/USD pair has witnessed a marginal correction after picking demand near the 1.2120 mark in the Asian session. The Cable has attempted a recovery backed by volatile moves shown by the US Dollar Index (DXY). It would be early to cite that the risk aversion theme has faded amid an absence of a positive trigger. Therefore, the Cable’s recovery moves need to pass more filters ahead.
USD/JPY is rallying hard toward 138.00, helped by the latest dovish remarks from BoJ policymaker Nakamura and rebounding US Treasury yields. Nakamura squashed hopes of any hawkish BoJ pivot. The central bank divergence theme will continue to power the pair.
AUD/USD prints mild gains around 0.6700 as buyers struggle to defend the first daily gains in four heading into Wednesday’s European session. The Aussie pair’s latest gains could be linked to the recently released Covid guidelines from China. That said, China’s National Health Commission (NHC) mentioned that asymptomatic patients, cases with mild symptoms can undergo home quarantine. The updates also mentioned, “High-risk zones with no new infections for 5 straight days should be released from lockdown in a timely manner.”
The NZD/USD pair has witnessed intense selling pressure after failing to cross the critical mark of 0.6350 in the Asian session. The market participants dumped the Kiwi asset as China’s National Bureau of Statistics has reported downbeat Trade Balance data.
USD/CAD grinds higher around 1.3660 even as the Loonie pair traders turn cautious ahead of Wednesday’s Bank of Canada (BOC) Interest Rate Decision. In doing so, the quote remains sidelined after rising in the last three consecutive days to the highest levels in one month.
USD/CHF aptly portrays the market’s indecision as it makes rounds to 0.9420 during Wednesday’s Asian session. The Swiss Franc (CHF) pair printed the first daily loss in three the previous day while reversing from 0.9456 but the pullback failed to last longer than 0.9380, before printing the last inaction.
Oil futures edged slightly higher on Wednesday on hopes for improved Chinese demand while uncertainty about how a Western cap on Russian oil prices would play out kept markets on edge after a sharp fall the previous session.
Gold price is trying hard to stay on the bid so far in this Wednesday’s trading after witnessing a minor bounce on Tuesday. The United States Dollar (USD) is extending its recovery rally, taking the lead from the rebound in the US Treasury bond yields.
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