EUR/USD
EUR/USD is trading under pressure near 1.0900 in European trading on Wednesday, retracing from seven-month highs. The continued recovery in risk sentiment and a broad US Dollar rebound, in the face of the USD/JPY rally, drag the pair lower.
GBP/USD
GBP/USD retraces its recent losses, trading around 1.2710 during the Asian session on Wednesday. This upside could be attributed to the tepid US Dollar (USD) following the rising expectations of a more aggressive rate cut starting in September after the weaker US employment data in July raised the fear of a looming US recession.
USD/JPY
USD/JPY reverses sharply after testing 148.00 early Wednesday. Dovish comments from the BoJ official Uchida, however, keep the Japanese Yen on the back foot, underpinning the pair. The Fed- BoJ policy divergence stays in the spotlight amid an upbeat mood.
AUD/USD
The Australian Dollar (AUD) extends its gains against the US Dollar (USD) for the second consecutive session on Wednesday. This upside is attributed to the Reserve Bank of Australia’s (RBA) monetary policy decision on Tuesday. The RBA maintained the Official Cash Rate (OCR) at 4.35% for the sixth time.
NZD/USD
The NZD/USD pair extends the rally near 0.5980 during the early Asian session on Wednesday. The further upside of the New Zealand Dollar (NZD) is bolstered by the upbeat New Zealand employment report. Traders trim bets on RBNZ, pivoting to rate cuts next week.
USD/CAD
The USD/CAD pair trades flat around 1.3785 during the early Asian session on Wednesday. The US Dollar (USD) rebounds as some calm returns to the markets, which helps limit the pair’s losses. Later in the day, the Canadian July Ivey Purchasing Managers Index (PMI) and EIA US crude oil inventories report will be released.
USD/CHF
USD/CHF breaks its six-day losing streak, trading around 0.8590 during the Asian session on Wednesday. This upside is attributed to the improved US Dollar (USD) amid rising Treasury yields. The US Dollar Index (DXY) extends its gains for the second day, reaching 103.30 with 2-year and 10-year yields on US Treasury bonds standing at 4.02% and 3.91%, respectively, at the time of writing.
CRUDE OIL
Oil prices fell in Asian trade on Wednesday after a mixed reading on U.S. inventories, with persistent concerns over slowing economic growth and weak demand keeping prices under pressure.
GOLD
Gold price is extending its losing momentum into the fifth straight day on Wednesday, approaching the weekly low of $2,364 amid a broadly firmer US Dollar and an uptick in the US Treasury bond yields.
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