EUR/USD is grinding higher to near 1.0650 in the early European morning, reversing the initial pullback. The US Dollar rebound seems to have lost traction despite a cautious market mood, as retreating US Treasury yields weigh. US data awaited.
GBP/USD treads water around 1.2030 as it struggles for clear directions amid mixed clues and the year-end holiday season. The Cable pair welcomed bears the previous day as the US Treasury yields underpinned the US Dollar. However, the Covid-linked optimism in the UK and China puts a floor under the prices.
USD/JPY is consolidating its renewed upside around 134.00 in the European morning. The expectations of the continuation of an ultra-loose monetary policy by the Bank of Japan (BOJ) continue to bode ill for the Japanese Yen.
The AUD/USD pair is facing pressure in overstepping the critical mark of 0.6750 in the Tokyo session. Earlier, the Aussie asset displayed a recovery after dropping to near 0.6720. The major is needed to surpass the 0.6750 hurdle to extend its recovery, however, a recovery in the US Dollar index (DXY) is dampening optimism in the antipodean.
NZD/USD takes offers to refresh intraday low near 0.6260, extending the previous day’s downbeat momentum, while tracing the recently bearish options market signals.
USD/CAD prints mild gains around 1.3530 as bulls and bears jostle during the first positive day for the Loonie pair in three. The US Dollar rebound and the recent pullback in the Oil prices could be linked to the quote’s recovery. However, the holiday mood and a light calendar, not to forget fewer macros, keep the USD/CAD traders in check.
USD/CHF struggles for clear directions as it makes rounds to 0.9300, following the first daily negative closing in three. The Swiss Franc (CHF) pair’s latest weakness could be linked to the run-up in the US Treasury bond yields. However, the holiday season and the cautious optimism in the market seem to challenge the downside momentum.
Oil prices fell on Wednesday on concerns that rising COVID-19 cases in China, the world’s top oil importer, will disrupt its economic recovery as it unwinds its pandemic restrictions, limiting fuel demand growth.
Gold extends pullback from six-month high, renews intraday low of late. Easing optimism surrounding China, fading recession woes in the US weigh on XAU/USD.
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