EUR/USD
The EUR/USD pair holds positive ground near 1.1410 during the early European trading hours on Wednesday, bolstered by a hawkish tone from the European Central Bank (ECB). However, the potential upside for the major pair might be limited amid escalating military tensions and recent retaliatory airstrikes between the US and Iran.
GBP/USD
The British Pound (GBP) consolidates losses against the US Dollar (USD) on Wednesday, as a string of UK inflation figures provided some leeway for the Bank of England to maintain its “wait-and-see” stance through the coming months. The GBP/USD pair remains pinned near weekly lows, below 1.3400 following a nearly 1.2% decline in the last four days.
USD/JPY
The USD/JPY enters a bullish consolidation phase during the Asian session on Wednesday and holds steady above the 163.00 mark, near its highest level since 1986 set the previous day. Traders, however, remain on high alert amid speculations that Japanese authorities will step in to prop up the domestic currency. This, in turn, is seen acting as a headwind for spot prices, though the supportive fundamental backdrop backs the case for an extension of the recent well-established uptrend.
AUD/USD
The AUD/USD pair gathers strength to near 0.7010 during the early Asian trading hours on Wednesday. The Australian Dollar (AUD) strengthens against the US Dollar (USD) as the likelihood of the Reserve Bank of Australia (RBA) interest rate hike rises. Australia’s Employment report for June will take center stage later on Thursday.
NZD/USD
NZD/USD depreciates after opening at a bullish gap, remaining in the positive territory and trading around 0.5830 during the Asian hours on Wednesday. The pair loses ground as the US Dollar (USD) pares its daily losses due to growing risk aversion tied to escalating geopolitical tensions between the United States and Iran.
USD/CAD
The USD/CAD pair struggles to capitalize on its strong weekly gains registered over the past two days and edges lower during the Asian session on Wednesday. Spot prices currently trade around the 1.4100 round figure, though the fundamental backdrop warrants caution for aggressive bearish traders.
USD/CHF
USD/CHF continues its winning streak for the third successive day, trading around 0.8130 during the Asian hours on Wednesday. The pair appreciates as the US Dollar (USD) receives support from growing risk aversion tied to escalating geopolitical tensions between the United States and Iran.
CRUDE OIL
Oil prices extended gains on Wednesday as fears of further supply disruptions intensified after U.S. forces struck Iranian military targets for the 11th straight night, while oil tankers made U-turns in the Red Sea after warnings by Iran-backed Houthi militia.
Gold (XAU/USD) maintains its bid tone heading into the European session and currently trades just below a two-week high, set earlier this Wednesday. The US Dollar (USD) drifts lower following a four-day uptrend amid hopes that US-Iran diplomacy could ease energy prices and temper hawkish US Federal Reserve (Fed) expectations, underpinning the commodity. In fact, top negotiators for Iran and the US signaled that they have not walked away from talks. US Secretary of State Marco Rubio said on Sunday that the US was still open to holding talks with Iran, while Iran’s Interior Minister Eskandar Momeni asked Pakistan to continue its efforts. Moreover, reports suggest that mediators are working to bring the US and Iran back to the negotiating table.
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