EUR/USD is consolidating gains below 1.0900, as bulls take a breather heading into Wednesday’s European session. The US Dollar struggles to find its feet amid sluggish Treasury yields and cautious markets. All eyes remain on the EU inflation data and Fed decision.
GBP/USD is struggling to gain any meaningful upside traction above 1.2300 in early Europe. The pair remains supported as the US Dollar licks its wounds amid weaker US Treasury yields and cautious trading ahead of the Fed policy announcements. US PMIs will be also eyed.
USD/JPY consolidates recent losses around 130.20, posting minor gains as market players appear cautious ahead of the key Federal Reserve (Fed) verdict. Also challenging the sentiment, as well as the Yen pair, could be the latest moves of the Japan Government Bond (JGB) yields.
AUD/USD takes offers to refresh intraday low around 0.7040 as the market’s anxiety ahead of the key Fed verdict amplifies during early Wednesday. Adding strength to the pullback moves could be the Chinese activity data from the industry group.
NZD/USD has stretched its recovery above 0.6440 in the early European session. The Kiwi asset displayed a recovery move after testing Tuesday’s low around 0.6415 due to subdued performance by the US Dollar Index (DXY). The USD Index is demonstrating topsy-turvy moves in a 101.70-101.80 range and is likely to display a downside break due to less anxiety among investors than usual ahead of the interest rate decision by the Federal Reserve (Fed).
USD/CAD remains defensive around 1.3310 amid sluggish markets on early Wednesday, treading water after reversing from a one-week high the previous day. The Loonie pair’s latest inaction portrays the cautious mood ahead of the Federal Open Market Committee (FOMC) monetary policy meeting. Also challenging the quote is the Oil traders’ anxiety before the Joint Ministerial Monitoring Committee (JMMC) of the Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia, known collectively as OPEC+.
USD/CHF steadies around 0.9160 after marking the biggest daily slump in nearly 2.5 months the previous day. The Swiss currency pair’s fall on Tuesday could be linked to the broad US Dollar weakness and the firmer equities, which in turn enabled the quote to ignore downbeat data at home.
Crude prices settled mixed on Tuesday as expectations for a U.S. inventory drop and a smaller Federal Reserve rate hike for February faced off with negative connotations linked to a likely OPEC+ decision to keep production steady.
Gold price is trading listlessly below $1,930 early Wednesday, lacking a clear directional bias, as traders move on the sidelines ahead of the all-important Fed monetary policy decision. The US Dollar is struggling to find its feet amid weak US Treasury bond yields and cautious markets.
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