EUR/USD
The EUR/USD pair attracts some buyers to around 1.1500 during the Asian trading hours on Wednesday. A slew of downbeat US economic data weigh on the Greenback. However, escalating Israel-Iran tensions might cap the upside for the major pair. The US Federal Reserve rate decision will be closely watched later on Wednesday.
GBP/USD
GBP/USD edges higher after registering over 1% losses in the previous day, trading around 1.3440 during the Asian hours on Wednesday. Traders will focus on the UK Consumer Price Index data for May, scheduled to be released later in the day.
USD/JPY
The Japanese Yen (JPY) attracts some dip-buying during the Asian session on Wednesday and snaps a three-day losing streak against a weaker US Dollar (USD), back closer to the monthly low. Persistent trade-related uncertainties and rising geopolitical tensions keep investors on edge, which, in turn, is seen lending some support to the safe-haven JPY. However, the Bank of Japan’s (BoJ) cautious approach to unwinding its decade-long monetary stimulus could cap the JPY.
AUD/USD
The Australian Dollar (AUD) edges higher against the US Dollar (USD) on Wednesday after registering more than 0.50% losses in the previous session. However, the AUD/USD pair struggled due to dampened risk appetite amid escalating Middle East tensions. Israel and Iran continue their cycle of retaliation. However, Tehran has reportedly urged several countries, including Oman, Qatar, and Saudi Arabia, to urge US President Donald Trump to declare an immediate ceasefire.
NZD/USD
The NZD/USD pair gathers strength to around 0.6025 during the early Asian session on Wednesday. The New Zealand Dollar (NZD) edges higher against the Greenback amid reduced rate cut expectations from the Reserve Bank of New Zealand (RBNZ). Later on Wednesday, the US Federal Reserve (Fed) interest rate decision will be in the spotlight.
USD/CAD
USD/CAD edges lower after losing over 0.5% in the previous session, trading around 1.3660 during the Asian hours on Wednesday. The pair holds losses as the US Dollar (USD) loses ground ahead of the US Federal Reserve’s (Fed) interest rate decision due later in the day.
USD/CHF
The USD/CHF pair softens to around 0.8135 during the early European session on Tuesday. The persistent geopolitical risks in the Middle East provide some support to the Swiss Franc (CHF) against the US Dollar (USD). Traders brace for the US Retail Sales data for May, which is due later on Tuesday.
CRUDE OIL
Oil prices rose in Asian trade on Wednesday, extending a 4% gain from the previous session on worries that the Iran-Israel conflict could disrupt supplies.
Gold price struggles to gain traction as traders remain on the sidelines ahead of the Fed rate decision. The USD retreats from the weekly high amid Fed rate cut bets and lends support to the commodity. Trade-related uncertainties and rising geopolitical tensions further benefit the safe-haven XAU/USD.
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