EUR/USD
EUR/USD remains steady following recent gains registered in the previous session, trading around 1.0300 during the Asian hours on Wednesday. The pair received support as the market sentiment is improved due to recent reports about US President-elect Donald Trump’s economic team considering a gradual increase in import tariffs boosted investor confidence, per Bloomberg.
GBP/USD
GBP/USD struggles to capitalize on this week’s modest bounce from a multi-year low. Stagflation fears and UK fiscal concerns undermine the GBP and weigh on the major. Subdued USD demand acts as a tailwind for the pair ahead of the UK/US CPI prints.
USD/JPY
USD/JPY has come under renewed selling pressure and drops below 157.50 in the early European morning on Wednesday. The pair retraces from near 158.00 after BoJ Governor Ueda talks up the odds of a rate hike next week. Meanwhile, US Dollar stays subdued ahead of the crucial US CPI report.
AUD/USD
The US Dollar (USD) added to Monday’s losses, pushing the US Dollar Index (DXY) to the low-109.00s on turnaround Tuesday. Meanwhile, the Australian Dollar (AUD) extended its positive start to the week and flirted once again with the 0.6200 neighbourhood on Wednesday early hours.
NZD/USD
The NZD/USD pair posts modest gains to near 0.5600 on Wednesday during the Asian trading hours. The cooler-than-expected US December Producer Price Index (PPI) inflation data drags the US Dollar (USD) lower and creates a tailwind for the pair.
USD/CAD
USD/CAD stays silent after two days of losses, trading around 1.4360 during the Asian hours on Wednesday. The downside in the USD/CAD pair can be attributed to an improved outlook for foreign currency inflows, reduced US trade concerns, and hawkish expectations for the Bank of Canada (BoC).
USD/CHF
The USD/CHF pair trades with a mild negative bias around 0.9120 during the early European session on Wednesday. The markets might turn cautious ahead of the US Consumer Price Index (CPI) inflation data for December on Wednesday.
CRUDE OIL
Oil prices rose on Wednesday trimming losses from the previous day, as the focus turned back to potential supply disruptions from sanctions on Russian tankers, though gains were capped as the market awaited more clarity on their impact.
GOLD
Gold price attracts some sellers as the risk-on mood undermines demand for safe-haven assets. The prospects for a slower Fed rate cut contribute to driving flows away from the XAU/USD pair. A softer USD and geopolitical risks could support the precious metal ahead of the US CPI report.
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