EUR/USD is falling back toward 1.0600 in early Europe, retreating from six-month highs. The pair eases amid a renewed demand for the US Dollar, as investors turn cautious and reposition ahead of the critical Fed policy announcements.
GBP/USD is holding lower ground near 1.2350, awaiting the UK inflation data for fresh impetus. Markets turn cautious again, allowing a tepid bounce in the US Dollar across the board. Focus shifts to the Fed and BoE policy decisions.
USD/JPY fell to a one-week low of 134.65 and is currently down 0.1% in Asia as it consolidates the losses made following the US Consumer Price Index that showed that inflation rose less than expected last month. Traders now exp[etc that the Federal Reserve will slow the pace of rate increases after its two-day meeting on Wednesday.
The AUD/USD pair has extended its correction to near 0.6820 in the Asian session. The Aussie asset is declining continuously after failing to conquer the critical mark of 0.6900 on Tuesday. Soft United States Consumer Price Index (CPI) data brought a juggernaut rally in the Australian Dollar. However, the latter failed to keep the same.
The NZD/USD pair has turned sideways around 0.6430 after a gradual correction from Tuesday’s high above 0.6500. The Kiwi asset is seeking a cushion as the overall market is still bullish. Anxiety ahead of the Federal Reserve (Fed) policy has seldom impacted the risk-sensitive currencies in the Tokyo session.
USD/CAD renews its intraday top near 1.3575 as it consolidates the recent losses near the weekly low amid early Wednesday morning in Europe. In doing so, the Loonie pair prints the first intraday gains in three days while reversing the previous day’s heavy declines amid a sluggish session ahead of the US Federal Reserve’s (Fed) monetary policy meeting.
USD/CHF struggles to extend the previous day’s recovery while taking rounds to 0.9360-50 during early Tuesday. In doing so, the Swiss Franc (CHF) pair portrays the market’s anxiety ahead of the key US Consumer Price Index (CPI), especially when the early signals for the data flash mixed lights.
Oil prices fell in early trade on Wednesday after industry data showed a surprise build in U.S Crude inventories against analysts’ forecast of a decline, reinforcing fears about weakening demand even as supply tightens.
Gold price is treading water above the $1,800 mark on Wednesday, as the United States Dollar (USD) licks its wounds amid a sense of calm across the board, in anticipation of the all-important Fed policy decision and Chair Jerome Powell’s press conference.
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