EUR/USD
The EUR/USD pair trades in a tight range around 1.1545 during the Asian trading session on Wednesday. The major currency pair consolidates as the US Dollar (USD) trades calmly ahead of the United States (US) Consumer Price Index (CPI) data for May, which will be published at 12:30 GMT.
GBP/USD
The GBP/USD pair trades in positive territory around 1.3390 during the early European trading hours on Wednesday. Markets might turn cautious later in the day ahead of the US May Consumer Price Index (CPI) inflation report. On Friday, the monthly UK Gross Domestic Product data will be in the spotlight.
USD/JPY
USD/JPY flatlines after experiencing volatility, trading around 160.40 during the Asian hours on Wednesday. The pair continues to hold its ground, reflecting a struggling Japanese Yen (JPY) that has failed to find support despite a massive acceleration in wholesale inflation. Driven by surging energy costs linked to the ongoing Middle East conflict, Japan’s Producer Price Index (PPI) jumped 6.3% year-over-year in May. This hot printing comfortably outpaced April’s upwardly revised 5.3% figure and surpassed market consensus of 5.5%, marking the fastest pace of wholesale price growth in three years.
AUD/USD
AUD/USD extends its losses for the second successive day, trading around 0.7020 during the Asian hours on Wednesday. Traders will likely await the release of Consumer Price Index (CPI) and Producer Price Index (PPI) data for May from China, Australia’s close trading partner, due later in the day. Focus will be shifted toward the US May CPI inflation data due later in the North American session.
NZD/USD
The NZD/USD pair holds steady around 0.7030 during the Asian trading hours on Wednesday. The New Zealand Dollar (NZD) steadies against the US Dollar (USD) following China’s economic data. All eyes will be on the US May Consumer Price Index (CPI) inflation report later on Wednesday.
USD/CAD
The Canadian Dollar (CAD) edges up against the US Dollar (USD) on Wednesday, with the USD/CAD pair trading near1.3940 after hitting year-to-date highs at 1.3969 on Tuesday. The safe-haven USD remains supported by fresh tensions in the Middle East, as investors await the release of US inflation figures and the Bank of Canada’s (BoC) monetary policy decision, due later on the day.
USD/CHF
USD/CHF extends its gains for the fourth successive day, trading around 0.7990 during the Asian hours on Wednesday. The pair may further appreciate as the safe-haven demand could support the US Dollar (USD), which could be attributed to the renewed Middle East tensions.
CRUDE OIL
Oil prices rebounded in Asian trade on Wednesday, as fresh U.S. strikes on Iran over the downing of an American helicopter reignited supply concerns and cast doubt on a fragile ceasefire.
Gold (XAU/USD) attracts heavy follow-through selling on Wednesday and weakens further below the $4,200 mark, hitting a fresh low since March 23 during the Asian session. Renewed hostilities between the US and Iran fuel inflationary concerns and bolster bets for more hawkish central banks, which, in turn, is seen as a key factor driving flows away from the non-yielding yellow metal. Furthermore, the decline could be attributed to technical selling following the recent breakdown below the very important 200-day Simple Moving Average (SMA).
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