EUR/USD
The EUR/USD pair is seen consolidating the previous day’s heavy losses and oscillating in a narrow band, below mid-1.1700s, during the Asian session on Wednesday. Traders now seem hesitant and opt to move to the sidelines ahead of a meeting between US President Donald Trump and his Chinese counterpart, Xi Jinping.
GBP/USD
The GBP/USD pair struggles to capitalize on the previous day’s late bounce from the 1.3500 psychological mark, or a nearly two-week low, and oscillates in a narrow band during the Asian session on Wednesday. Spot prices remain below the 1.3550 level and seem vulnerable to weaken further amid a combination of negative factors.
USD/JPY
USD/JPY recovers some ground and rallies towards a daily four-day high near 157.80 as traders digest comments from US Treasury Secretary Scott Bessent on undesirable volatility in the FX space, prompting a Yen buy. At the time of writing, the pair is up by over 0.30%.
AUD/USD
The AUD/USD pair struggles to capitalize on the overnight bounce from the 0.7200 neighborhood and trades with a negative bias for the second straight day on Wednesday. Spot prices, however, lack bearish conviction and currently trade around the 0.7235 region as investors opt to move to the sidelines ahead of the Trump-Xi summit.
NZD/USD
The New Zealand Dollar (NZD) extends gains against the US Dollar (USD) on Friday, reaching session highs at 0.5970, after bouncing from 0.5930 earlier on the day. The Greenback loses ground despite a cautious market mood, as investors shift their focus from Iran to April’s US Nonfarm Payrolls (NFP) report.
USD/CAD
The US Dollar (USD) is practically flat against the Canadian Dollar (CAD) on Wednesday, hovering at a short distance from the four-week high, at 1.3724. The strong US consumer inflation figures released on Tuesday, and the rally on US Treasury yields are supporting the US Dollar, while the high Oil prices keep the Loonie from falling further.
USD/CHF
The USD/CHF pair trades on a flat note around 0.7805 during the early European trading hours on Wednesday. Traders await the key US inflation data and continue to assess the developments surrounding US-China talks later this week.
CRUDE OIL
Oil prices fell on Wednesday after climbing for three straight sessions, as traders weighed continued disruption to shipping through the Strait of Hormuz, and awaited a meeting between Donald Trump and Chinese President Xi Jinping.
Gold (XAU/USD) struggles to capitalize on the overnight bounce from a multi-day low, around the $4,638 region, and trades with a negative bias for the second straight day on Wednesday. Stronger-than-expected US consumer inflation figures released on Tuesday reaffirmed expectations for a more hawkish US Federal Reserve (Fed). This, along with geopolitical uncertainties, helps the US Dollar (USD) to preserve Tuesday’s gains to its highest level in over one week and exerts some pressure on the precious metal heading into the European session.
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