EUR/USD
The EUR/USD pair trades with a positive bias for the third straight day and holds steady above the 1.1600 mark through the Asian session on Wednesday. Bulls, however, seem hesitant and opt to wait for the outcome of a two-day FOMC policy meeting before positioning for an extension of the recent goodish recovery from the 1.1500 psychological mark, or over a two-month low, touched last week.
GBP/USD
The British Pound (GBP) extends losses against the US Dollar (USD) on Wednesday, with the GBP/USD pair hitting a weekly low of 1.3410 at the time of writing. Softer-than-expected UK Consumer Price Index (CPI) figures have provided further reasons for the Bank of England (BoE) to keep interest rates on hold in the coming months, which has hurt speculative demand for the Cable.
USD/JPY
The USD/JPY pair loses ground to near 160.25 during the early European trading hours on Wednesday. Traders prefer to wait on the sidelines ahead of the US Federal Reserve (Fed) interest rate decision under new Chair Kevin Warsh later on Wednesday.
AUD/USD
The AUD/USD pair trades with mild gains around 0.7070 during the early Asian trading hours on Wednesday. The Australian Dollar (AUD) strengthens against the US Dollar (USD) after the Reserve Bank of Australia (RBA) delivered a hawkish hold on rates on Tuesday.
NZD/USD
The NZD/USD pair trades with a positive bias for the second consecutive day on Wednesday, though it lacks bullish conviction and remains below mid-0.5800s through the Asian session. Traders now seem hesitant and opt to wait for the outcome of a two-day FOMC meeting before positioning for a firm near-term direction.
USD/CAD
USD/CAD halts its four-day winning streak, trading around 1.3990 during the Asian hours on Wednesday. The US Dollar (USD) experiences downward pressure as easing risk aversion weighs on the currency, a shift largely driven by growing expectations of a breakthrough peace deal between the United States (US) and Iran.
USD/CHF
USD/CHF gains ground after registering modest losses in the previous day, trading around 0.7950 during the Asian hours on Tuesday. The pair appreciates as the US Dollar (USD) holds steady amid broad market caution. Investors remain on the defensive as they await further updates regarding Iran’s unresolved nuclear program.
CRUDE OIL
Oil prices extended losses on Wednesday, falling for a fifth straight session, as investors weighed the prospect of increased global supply following a U.S.-Iran peace agreement, while a sharp drawdown in U.S. crude inventories provided some support to the market.
Gold (XAU/USD) remains on the back foot heading into the European session on Wednesday, though it lacks follow-through selling and holds comfortably above the $4,300 mark. Traders now seem hesitant ahead of the highly anticipated FOMC policy decision, keeping the commodity below the weekly high, touched on Monday, and the technically significant 200-day Simple Moving Average (SMA). However, the latest optimism over an interim US-Iran peace deal undermines the safe-haven US Dollar (USD), which is seen acting as a tailwind for the bullion.
Any information provided therein are indicative and subjective to the technical analysis method or trading patterns used and the timing of their release. Those are provided as general market information and/or market commentary and/or the publication of market/factual data and should not be construed as containing personal and/or other investment recommendation, and/or to be Investment Advice or independent Investment Research. As such, the legal and regulatory requirements in relation to independent investment research do not apply to this material and it is not subject to any prohibition on dealing ahead of its dissemination. For the full Risk Disclaimer click here.
