EUR/USD is juggling in a tight range around 1.0750 ahead of the European open. The US Dollar resumes decline alongside the Treasury bond yields amid a better market mood. Range-play could likely extend ahead of Thursday’s critical US inflation data.
GBP/USD is rising above 1.2150 heading into Wednesday’s London open, investors stay on the sidelines ahead of Thursday’s US inflation data. Risk flows dominate and weigh down on the safe-haven US Dollar.
USD/JPY picks up bids to 132.45 during early Wednesday’s sluggish trading as market sentiment appears cautiously optimistic. In doing so, the Yen pair ignores the downbeat prints of the US Treasury yields. Risk appetite improves during the lackluster day after global central bankers, led by Fed Chair Jerome Powell, refrained from any major signals during their stints at the Riksbank event. On the same line could be the updates from Chinese media suggesting an improvement in investment momentum in the dragon nation.
The AUD/USD has failed to sustain above the 0.6900 mark despite better-than-projected Australian inflation providing strength to the Australian Dollar. The Aussie asset has sensed heat as the US Dollar Index (DXY) has rebounded in its early trade.
NZD/USD treads water around 0.6370 during early Wednesday. In doing so, the Kiwi pair portrays the market’s inactivity amid a light calendar and mixed catalysts. Among them, the US Dollar’s hesitance to track the downbeat US Treasury bond yields joins firmer New Zealand (NZ) data and a light calendar elsewhere. Also likely to restrict immediate NZD/USD moves could be the market’s cautious mood ahead of Thursday’s key inflation data for the US and China.
USD/CAD picks up bids to refresh intraday high near 1.3440 while stretching the previous day’s rebound from a 1.5-month low during early Wednesday. In doing so, the Loonie pair fails to portray the US Dollar’s weakness as prices of Canada’s main export item, WTI crude oil, return to the bear’s radar after a brief absence.
The USD/CHF pair demonstrated a balanced profile of around 0.9220 in the early Asian session. The Swiss franc asset has turned sideways as the market participants are awaiting the release of the United States inflation data for fresh cues.
Oil prices fell on Wednesday as an unexpected build in crude and fuel inventories in the U.S., the world’s biggest oil consumer, and economic uncertainty reignited demand worries.
Gold price is trading listlessly, consolidating just below the eight-month high of $1,881 amid quiet trading so far this Wednesday. Gold price is replicating the move seen during Tuesday’s Asian session amid a pause in the United States Dollar (USD) downside momentum.
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