EUR/USD is trading on the defensive below 1.080,0 as it struggles to extend the two-day winning streak near the highest levels since late May early Wednesday. The pair is weighed by the cautious mood ahead of the Fed policy decision.
GBP/USD aptly portrays the Fed day anxiety as it makes rounds to 1.2610 during early Wednesday. In doing so, the Cable pair fades upside momentum as the traders recheck the hawkish signals flashes via the US inflation and the UK employment data the previous day.
USD/JPY bears struggle to keep the reins amid early Wednesday in Europe, despite snapping a three-day uptrend by retreating from a one-week high to around 140.00 at the latest. In doing so, the Yen pair portrays the market’s cautious mood ahead of the all-important Federal Open Market Committee (FOMC) monetary policy meeting.
AUD/USD portrays the typical pre-Fed anxiety as it dribbles around 0.6770 amid the early hours of Wednesday, after refreshing the monthly high the previous day. That said, the Aussie pair cheered downbeat prints of the US inflation data, as well as the firmer sentiment the previous day, to refresh the five-week high before retreating from 0.6806. However, the market’s expectations that the Fed hawks won’t easily leave the table challenge the Aussie pair buyers of late.
NZD/USD is 0.17% higher at the time of writing after moving up from a low of 0.6144 to a fresh high of 0.6161 in Tokyo trade. The focus is on the Federal Reserve today following Tuesday’s inflation report that points to sticky core inflation.
USD/CAD sellers occupy the driver’s seat, despite the sluggish US Dollar, as markets brace for the Federal Reserve Interest Rate Decision on early Wednesday. In doing so, the Loonie pair cheers recovery in Canada’s main export item, namely WTI crude oil, as well as hopes of witnessing no rate hike from the US central bank, while printing mild losses near 1.3300 at the latest.
The US Dollar (USD) remains on the defensive just above its lowest level since May 17 touched on Tuesday and is seen as a key factor acting as a headwind for the USD/CHF pair. The latest US consumer inflation figures released on Tuesday reaffirmed bets that the Federal Reserve (Fed) will skip hiking interest rates at the end of a two-day policy meeting later this Wednesday and continues to undermine the Greenback.
Oil prices crept lower on Wednesday after a strong rally in the prior session as markets hunkered down ahead of a closely-watched Federal Reserve interest rate decision, while industry data pointed to a build in U.S. inventories.
Gold price clings to mild gains as it snaps a three-day downtrend, as well as consolidation the weekly loss, while positioning for the Federal Open Market Committee (FOMC) monetary policy meeting announcements.
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