EUR/USD
EUR/USD remains stable ahead of the release of the Minutes from the Federal Open Market Committee meeting held on May 1, scheduled for Wednesday. The pair hovers around 1.0850 during the Asian trading session.
GBP/USD
GBP/USD remains confined in a narrow range just above 1.2700 early Wednesday. Markets await fresh impetus from the UK Consumer Price Index data, which could have a significant impact on the BoE’s rate cut outlook and the Pound Sterling.
USD/JPY
The Japanese Yen (JPY) weakened following the release of Japan’s Merchandise Trade Balance data on Wednesday. The report showed that the trade deficit increased to JPY 462.5 billion month-over-month in April, swinging from the previous surplus of JPY 387.0 billion. This outcome exceeded market expectations of a deficit of JPY 339.5 billion. The depreciation of the JPY led to an increase in the value of imports, outweighing gains from a rise in exports.
AUD/USD
The Australian Dollar (AUD) regained ground on Wednesday, reversing its recent losses, following the appreciation of the New Zealand Dollar (NZD) after the Reserve Bank of New Zealand (RBNZ) announced its decision to maintain its Official Cash Rate (OCR) at 5.5%. Both currencies share a close relationship due to their geographical proximity and strong trade ties between Australia and New Zealand.
NZD/USD
The NZD/USD pair rebounded after two days of losses, trading around 0.6140 during Asian hours on Wednesday following the Reserve Bank of New Zealand’s (RBNZ) interest rate decision. The central bank maintained its Official Cash Rate (OCR) at 5.5% for the seventh consecutive meeting as inflation remains elevated, remaining above the 1-3% target band.
USD/CAD
USD/CAD trades a beat higher on Wednesday, rising into the 1.3620s, as the US Dollar (USD) strengthens in most pairs, on the back of safe-haven demand as markets are put on edge by reports the President of Iran, Ebrahim Raisi, died in a freak helicopter accident in Northern Iran over the weekend, according to Reuters.
USD/CHF
USD/CHF extends its gains for the fourth day, trading around 0.9080 during the early European hours on Wednesday. The Swiss Franc (CHF) depreciated against the US Dollar (USD) after the release of the lower Industrial Production released by Swiss Statistics.
CRUDE OIL
Oil prices rose slightly in Asian trade on Monday as traders sought more information on rescue attempts for Iran’s President after a helicopter crash.
GOLD
Gold price is trading back and forth in a tight range above $2,400 early Wednesday, consolidating the previous losses. Gold traders await the Minutes of the US Federal Reserve May policy meeting for fresh trading impetus.
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