EUR/USD
The EUR/USD pair trades on a negative note near 1.1380 during the early Asian trading hours on Wednesday. The major pair extends the decline as traders continue to assess the developments surrounding the US-Iran peace deal.
GBP/USD
The GBP/USD pair loses traction to around 1.3195 during the early European trading hours on Wednesday. The British Pound (GBP) softens against the US Dollar (USD) amid political instability following Keir Starmer’s resignation as Prime Minister. Traders brace for the US May Personal Consumption Expenditures (PCE) Price Index data, which is due later on Thursday.
USD/JPY
The USD/JPY pair trades on a flat note around 161.60 during the early Asian trading hours on Wednesday. Increased expectations of a Federal Reserve (Fed) rate hike this year could underpin the US Dollar (USD) against the Japanese Yen (JPY). However, the potential upside for the pair might be limited amid fears of currency intervention from Japanese officials.
AUD/USD
The AUD/USD pair turns lower for the third straight day following a modest Asian session uptick to the 0.6920-0.6925 area and drops to a fresh low since April 7 on Wednesday. Bears now await a sustained breakdown and acceptance below the 0.6900 mark before positioning for an extension of the recent pullback from a four-year peak.
NZD/USD
The NZD/USD pair trades in negative territory for the sixth consecutive day near 0.5655 during the early European trading hours on Wednesday. The US Dollar (USD) gathers strength against the New Zealand Dollar (NZD) as traders reassess the timing of possible US rate hikes after the Federal Reserve’s (Fed) hawkish signal.
USD/CAD
The USD/CAD pair edges lower to around 1.4205 during the Asian trading hours on Wednesday. Nonetheless, the potential downside for the pair might be limited amid rising expectations of a Federal Reserve (Fed) rate hike this year. The US May Personal Consumption Expenditures (PCE) Price Index (PCE) data will take center stage later on Thursday.
USD/CHF
The Swiss Franc (CHF) extends its losses for the fifth straight trading day against the US Dollar (USD), down 0.15% on Tuesday, as risk appetite sours amid the AI rout and expectations that the Federal Reserve (Fed) could raise rates later this year. At the time of writing, USD/CHF trades at 0.8100
CRUDE OIL
Oil prices fell on Wednesday, extending this week’s losses and trading near four-month lows hit in the previous session, on signs that more oil tankers stranded in the Gulf since the start of the Iran war are set to move out of the Strait of Hormuz.
Gold (XAU/USD) recovers slightly from a nearly two-week low touched earlier this Wednesday, though it retains the negative bias below the $4,100 mark heading into the European session. Despite easing inflationary concerns amid the recent fall in Crude Oil prices, traders have been pricing in a greater chance of a rate hike by the US Federal Reserve (Fed). This, in turn, pushes the US Dollar (USD) to a fresh high since May 2025 and might continue to undermine the non-yielding bullion, warranting caution before positioning for any meaningful recovery.
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