EUR/USD attracts some dip-buying on Wednesday, though lacks bullish conviction. Bets that the ECB is done hiking rates act as a headwind for the Euro and cap gains. Traders also seem reluctant and now look to the FOMC decision for a fresh impetus.
GBP/USD came under renewed bearish pressure and dropped to its lowest level in nearly four months below 1.2350. The data from the UK showed that the annual CPI inflation declined to 6.7%, compared to analysts’ estimate of 7.1%, and weighed heavily on Pound Sterling.
The USD/JPY pair trades sideways in the 147.70-147.85 region during the early European session on Wednesday. At the press time, the major pair is trading at 147.83, losing 0.01% on the day. The market turns cautious ahead of the key Federal Reserve (Fed) interest rate decision on Wednesday in the North American session.
The AUD/USD pair struggles to gain any meaningful traction during the Asian session on Wednesday and remains below a two-week high, around the 0.6470-0.6475 area touched the previous day. Spot prices oscillates in a familiar band and currently hover around mid-0.6400s, awaiting the outcome of the highly-anticipated FOMC policy meeting before the next leg of a directional move.
NZD/USD extends its gains on the third successive day, trading higher around 0.5940 during the Asian session on Wednesday. However, the pair faced pressure earlier in the day ahead of the US Federal Reserve’s (Fed) decision.
USD/CAD trades higher around 1.3450 during the Asian session on Wednesday, snapping the two-day losing streak. The pair is under pressure after Canada’s upbeat inflation data was released on Tuesday.
The USD/CHF pair consolidates in a 0.8970-0.8980 range during the early Asian session on Wednesday. Meanwhile, the US Dollar Index (DXY), a measure of the value of USD against six other major currencies, holds above 105.10 after retracing from a six-month high of 105.40 last week. Markets turn cautious ahead of the Federal Reserve (Fed) interest rate decision on Wednesday. The pair currently trades near 0.8976, down 0.01% on the day.
Oil prices retreated further from 10-month highs on Wednesday ahead of the U.S. Federal Reserve’s interest rate decision, with investors uncertain when peak rates will be hit and how much of an impact it will have on energy demand.
Gold price is off the two-week high at $1,937, treading water near $1,930 early Wednesday, as buyers eagerly await the US Federal Reserve (Fed) interest rate decision for resuming the recent uptrend.
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