EUR/USD
The EUR/USD pair gains ground to near 1.0350 during the early European session on Wednesday. However, the potential upside of the major pair might be limited amid the prospects for slower interest rate cuts by the Federal Reserve in 2025.
GBP/USD
The GBP/USD pair maintains its position after registering losses in the previous session, hovering around 1.2480 during Wednesday’s Asian hours. Technical analysis on the daily chart points to a weakening bearish trend, as the pair is trading above the upper boundary of a descending channel pattern.
USD/JPY
The Japanese Yen (JPY) struggles to attract any buyers and languishes near a multi-month low against its American counterpart through the Asian session on Wednesday amid wavering Bank of Japan (BoJ) rate-hike expectations. Furthermore, the recent widening of the US-Japan rate differential, bolstered the Federal Reserve’s (Fed) hawkish shift, turns out to be another factor that continues to undermine the lower-yielding JPY.
AUD/USD
The Australian Dollar (AUD) faced challenges for the second consecutive session against the US Dollar (USD), with the AUD/USD pair holding losses despite stronger-than-expected monthly inflation data released on Wednesday. Traders are now focused on the upcoming FOMC Minutes, scheduled for release later in the day, as well as the US jobs data, including the Nonfarm Payroll (NFP) report on Friday, for additional insights into policy direction.
NZD/USD
The NZD/USD pair trades with mild losses near 0.5635 during the early Asian session on Wednesday. The upbeat US Services Purchasing Managers Index (PMI) for December suggested that the Federal Reserve (Fed) will likely slow the pace of its easing cycle, supporting the US Dollar (USD). Later on Wednesday, the Minutes of the Federal Open Market Committee (FOMC) will be in the spotlight.
USD/CAD
The USD/CAD pair struggles to capitalize on the previous day’s bounce from sub-1.4300 levels and attracts some sellers during the Asian session on Wednesday. Spot prices, however, hold comfortably above the lowest level in over two weeks touched on Monday and currently trade around mid-1.4300s, less than 0.10% for the day.
USD/CHF
USD/CHF steadies following gains from the previous day, trading around 0.9090 during the Asian session on Wednesday. The pair may strengthen as the US Dollar (USD) gains support from the hawkish shift in investor sentiment toward the Federal Reserve’s (Fed) interest rate outlook, following strong US economic data.
CRUDE OIL
Oil prices rose on Wednesday as supplies from Russia and OPEC members tightened while data showing an unexpected increase in U.S. jobs openings pointed to expanding economic activity and consequent growth in oil demand.
GOLD
Gold price is consolidating the previous rebound near $2,650 early Wednesday, awaiting the US ADP jobs report and the Minutes of the US Federal Reserve December meeting for the next leg higher.
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