EUR/USD
EUR/USD found further room on the low side on Tuesday, easing back another 0.16% and testing into a key technical barrier that could see fresh 16-week lows if the price floor opens up beneath the Euro.
European Central Bank (ECB) President Christine Lagarde made a handful of appearances on Tuesday, but talking points that ranged from pedestrian to unremarkable did little to support the Fiber. ECB head Lagarde noted that the ECB “is not unhappy with what it has seen”, adding in that the ECB “can’t jump to conclusion that inflation target is a done deal”, inspiring absolutely nobody in particular and delivering little of note in the way of forward guidance to currency markets that see the Euro on pace to backslide against the Greenback for a fourth consecutive week.
GBP/USD
GBP/USD held steady on Tuesday, testing the waters near the 1.3000 handle. Intraday price action tested a fresh nine-week low, and topside bidding failed to make a mark above 1.3000, keeping near-term momentum hobbled in a midrange just below the key handle.
USD/JPY
USD/JPY holds close to the highest in three months near 151.85. The pair continues to benefit from rallying US Treasury bond yields and a sustained US Dollar strength. The uncertainty of further BoJ rate hikes weighs on the Japanese Yen, adding to the pair’s upside.
AUD/USD
AUD/USD rises toward 0.6700 in the Asian session on Wednesday, picking up fresh bids on hopes of additional stimulus from China. The US Dollar consolidates gains, amid the prospect of slower rate cuts by the Fed and elevated US bond yields, supporting the pair.
NZD/USD
The NZD/USD pair extends its sideways consolidative price move through the Asian session on Wednesday and remains within the striking distance of a nearly two-month low touched earlier this week. Spot prices hold steady around the 0.6065 region and move little following the release of mostly upbeat Chinese macro data.
USD/CAD
The USD/CAD pair moves sideways, trading around 1.3820 during the Asian session on Wednesday, as traders await the Bank of Canada (BoC) interest rate decision later in the North American session. Market expectations are leaning toward a more substantial 50 basis point rate cut from the BoC.
USD/CHF
USD/CHF offers its gains from the previous session, trading around 0.8650 during the early European hours on Wednesday. This downside of the pair could be limited as the US Dollar (USD) gained support following a surge in US Treasury yields, which climbed over 2% on Monday. At the time of writing, the 2-year and 10-year US Treasury bond yields stand at 4.04% and 4.20%, respectively.
CRUDE OIL
Oil prices dipped on Wednesday after industry data showed U.S. crude inventories swelled more than expected, though declines were capped as the market watched diplomatic efforts in the Middle East after Israel continued attacks on Gaza and Lebanon.
GOLD
Gold price is seeing a minor correction early Wednesday, having hit a fresh record high of $2,749 in the US last session. The sustained strength in the US Dollar and the US Treasury bond yields weigh on the Gold price.
Any information provided therein are indicative and subjective to the technical analysis method or trading patterns used and the timing of their release. Those are provided as general market information and/or market commentary and/or the publication of market/factual data and should not be construed as containing personal and/or other investment recommendation, and/or to be Investment Advice or independent Investment Research. As such, the legal and regulatory requirements in relation to independent investment research do not apply to this material and it is not subject to any prohibition on dealing ahead of its dissemination. For the full Risk Disclaimer click here.
