EUR/USD
EUR/USD remains steady after five days of gains, trading around 1.1580 during the Asian hours on Wednesday. The pair may continue its winning streak as the Euro (EUR) could further gain amid a cautious tone surrounding the European Central Bank (ECB) policy outlook. The ECB is expected to keep interest rates unchanged for now, backed by steady economic performance and inflation near target.
GBP/USD
GBP/USD extends its losses for the second successive day, trading around 1.3140 during the Asian hours on Wednesday. The pair depreciates as the Pound Sterling (GBP) struggles amid growing expectations that the Bank of England (BoE) will cut interest rates in December. Analysts at Morgan Stanley, Citigroup, and UBS Global Research have shifted their stance and expect the BoE to cut interest rates by 25 basis points (bps) to 3.75%.
USD/JPY
The USD/JPY pair trades in positive territory near 154.10 during the early Asian session on Wednesday. The US Dollar (USD) strengthens against the Japanese Yen (JPY) amid optimism over a potential deal to end the US government shutdown. Federal Reserve (Fed) officials are set to speak later on Wednesday, including John Williams, Anna Paulson, Christopher Waller, Raphael Bostic, Stephen Miran and Susan Collins.
AUD/USD
AUD/USD traded slightly lower on Tuesday, hovering around 0.6530 at the time of writing, down 0.15% on the day. After reaching a weekly high at 0.6540 on Monday, the pair is consolidating amid hesitant market sentiment. Although the overall tone remains mildly positive, investors stay cautious ahead of the US House of Representatives’ vote on the government funding bill.
NZD/USD
The NZD/USD pair declines to around 0.5655 during the early Asian session on Wednesday. Optimism over a potential deal to end the US government shutdown provides some support to the US Dollar (USD) against the New Zealand Dollar (NZD). Traders will take more cues from the Fedspeak later on Wednesday.
USD/CAD
USD/CAD edges higher after three days of losses, trading around 1.4010 during the Asian hours on Wednesday. The pair appreciates as the US Dollar (USD) gains support from the ongoing process to reopen the United States (US) government. Traders will likely observe the upcoming speeches from Federal Reserve (Fed) officials, including Christopher Waller, Raphael Bostic, and Stephen Miran, later in the day.
USD/CHF
The USD/CHF pair trades with caution around 0.8000 during the late Asian trading session on Wednesday. The Swiss Franc pair faces selling pressure as the US Dollar (USD) falls on the back foot amid growing expectations that the Federal Reserve (Fed) could cut interest rates again this year.
CRUDE OIL
Oil prices fell slightly in Asian trade on Wednesday, taking limited support from increasing signs that an end to the longest ever U.S. government shutdown was at hand.
Gold (XAU/USD) attracts some sellers during the Asian session on Wednesday and for now, seems to have snapped a three-day winning streak to the $4,150-4,155 region, or a three-week high touched the previous day. A positive development towards reopening the US government remains supportive of the risk-on mood and acts as a headwind for the safe-haven precious metal. Apart from this, a goodish pickup in the US Dollar (USD) demand turns out to be another factor exerting some pressure on the commodity.
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