EUR/USD is oscillating in a narrow range near 1.1050 in early Europe on Wednesday. The pair is lacking a clear directional bias amid the holiday season in the final week of 2023, as the US Dollar struggles on dovish Fed expectations.
GBP/USD is hovering above 1.2700 in the European morning on Wednesday. Divergent monetary policy outlooks between the Fed and BoE undermine the US Dollar, keeping the pair afloat amid the year-end light trading.
The USD/JPY pair gains ground during the early Asian session on Wednesday. The pair has reached 142.84 following the release of the Bank of Japan’s (BoJ) Summary of Opinions and currently trades around 142.60. The market is likely to be quiet amid the light trading volume in the last week of 2023.
The AUD/USD pair posts modest losses during the early Asian session on Wednesday. However, the downside of the pair remains capped as the dovish Fed narrative is likely to keep the US Dollar (USD) under pressure. The market will be quiet amid the thin trading in the last week of the year. AUD/USD currently trades near 0.6823, down 0.02% on the day.
The Kiwi has resumed its uptrend on Froday´s European morning session, to explore levels beyond 0.6300. The US Dollar is trading lower across the board ahead of the release of November´s PCE Prices Index data.
USD/CAD hovers below 1.3200 during the Asian trading hours on Wednesday. However, Canadian economic data showed an economic slowdown. Canadian Gross Domestic Product (GDP) (MoM) failed to print growth for a fourth straight in October, coming in flat at 0.0% after September’s GDP print saw a downside revision from a meager 0.1% to flat.
USD/CHF attempts to rebound from a five-month low at 0.8557. The US Dollar (USD) faces downward pressure on softer economic data from the United States (US) released last Thursday, coupled with the heightened expectations of the Federal Reserve’s (Fed) dovish stance on rate cuts in the first quarter of 2024.
Oil prices were little changed on Wednesday as investors monitored Red Sea developments, with some major shippers resuming passage through the area despite continued attacks and broader Middle East tensions.
Gold snaps a three-day uptrend near $2,070 early Wednesday. The US Dollar finds its feet amid sluggish US Treasury bond yields, a mixed mood. XAU/USD price faces a stiff hurdle at $2,079, a brief pullback cannot be ruled out.
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