EUR/USD
The EUR/USD pair gains ground to near 1.1425 during the early Asian trading hours on Wednesday. The US Dollar (USD) weakens against the Euro (EUR) as softer-than-expected US inflation data temporarily eased pressure on the Federal Reserve (Fed). Traders will take more cues from the US Producer Price Index (PPI) report, which is due on Wednesday.
GBP/USD
GBP/USD rises for the second consecutive day, trading around 1.3400 during the Asian hours on Wednesday. The pair appreciates as the US Dollar (USD) holds losses following softer-than-expected US inflation data, fueling hopes that the US Federal Reserve (Fed) might adopt a less hawkish monetary stance.
USD/JPY
The USD/JPY pair struggles to capitalize on the previous day’s late rebound from the vicinity of mid-161.00s, or the weekly low, and trades with a mild negative bias for the second straight day on Wednesday. Spot prices slip below the 162.00 mark during the Asian session, though the downside potential seems limited.
AUD/USD
AUD/USD extends its gains for the second successive day, trading around 0.6980 during the Asian hours on Wednesday. The pair holds gains as the Australian Dollar (AUD) remains stronger following the release of key economic data from China, Australia’s close trading partner.
NZD/USD
The NZD/USD pair trades in positive territory around 0.5825 during the Asian trading hours on Wednesday. The New Zealand Dollar (NZD) remains firm against the US Dollar (USD) after the Chinese economic data. The attention will shift to the US June Producer Price Index (PPI) report later on Wednesday.
USD/CAD
The USD/CAD pair loses traction to near 1.4050 during the early European trading hours on Wednesday. Traders expect the US Federal Reserve (Fed) to skip the July rate hike as inflation cools, weighing on the US Dollar (USD) against the Canadian Dollar (CAD). The US Producer Price Index (PPI) and the Bank of Canada (BoC) interest rate decision will be the highlights later on Wednesday.
USD/CHF
USD/CHF steadies after registering 0.7% losses in the previous day, trading around 0.8090 during the Asian hours on Wednesday. The pair faced challenges as the US Dollar (USD) lost ground following softer-than-expected US inflation data, fueling hopes that the US Federal Reserve (Fed) might adopt a less hawkish monetary policy stance.
CRUDE OIL
Oil extended gains on Wednesday as President Donald Trump reimposed a naval blockade on all Iranian ports and Tehran launched strikes on U.S. infrastructure in the region.
Gold (XAU/USD) attracts fresh sellers after failing to find acceptance above the $4,100 mark the previous day and maintains its offered tone heading into the European session on Wednesday. Despite soft US Consumer Price Index (CPI) data, investors remain worried about energy-driven inflation as escalating US-Iran tensions and the closure of the Strait of Hormuz contribute to elevated crude oil prices. Furthermore, US Federal Reserve (Fed) Chair Kevin Warsh’s commitment to price stability in his first congressional testimony leaves the door open for at least one rate hike by year’s end and undermines the non-yielding bullion. However, a weaker US Dollar (USD) helps the commodity to hold above the $4,000 psychological mark and a nearly two-week low, touched on Tuesday.
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