EUR/USD glides on a dicey floor with mild gains around 1.0775 as it waits for the key catalysts on early Wednesday in Europe. In doing so, the Euro pair forms a bullish chart pattern called the “Double Bottom” with eyes on a speech from European Central Bank (ECB) President Christine Lagarde and Minutes of the latest Federal Open Market Committee (FOMC) Monetary Policy Meeting.
GBP/USD prints the first daily run-up in three as it clings to mild gains near 1.2420 ahead of the key UK inflation data and a speech from Bank of England (BoE) Governor Andrew Bailey, scheduled for Wednesday.
The USD/JPY pair is displaying signs of a sheer decline in volatility around 138.60 as investors are confused about further action in the FX domain. The asset is struggling to deliver a decisive move amid a lack of clarity as US debt-ceiling issues are not reaching a bipartisan deal.
The AUD/USD pair has returned above the 0.6600 mark after a downside move in the Asian session. The Aussie asset is looking to extend its recovery further as the US Dollar Index (DXY) has displayed a subdued performance.
NZD/USD remains on the back foot around a three-week low under 0.6200, close to 0.6180 by the press time, even as Reserve Bank of New Zealand (RBNZ) Governor Adrian Orr tries to placate Kiwi bears early Wednesday. That said, the quote dropped 150 pips after the RBNZ disappointed markets while keeping the peak rate unchanged, as well as matching the broad forecasts of increasing the Official Cash Rate (OCR) by 0.25%.
USD/CAD keeps making rounds to 1.3500 ahead of Wednesday’s European session, after three consecutively volatile days that ended without any daily gains/losses. In doing so, the Loonie pair tracks moves of the prices of Canada’s main export item, WTI crude oil, while ignoring the latest retreat in the US Dollar.
The USD/CHF pair has witnessed some recovery from the immediate mark of 0.9010 in the Asian session. The Swiss Franc asset has rebounded after building a base around 0.9010 as investors are shifting their focus toward the release of May’s meeting Federal Open Market Committee (FOMC) minutes.
Oil prices rose in Asian trade on Wednesday as industry data signaled a sharp drop in U.S. inventories, heralding tighter supplies, although concerns over slowing economic growth and a U.S. debt default still persisted.
Gold price treads water around $1,975 heading into Wednesday’s European session. In doing so, the precious metal portrays the market’s inaction amid mixed feelings and cautious mood ahead of the key data/events.
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