Euro (EUR) was a touch softer overnight, as US Dollar (USD) saw mild rebound. Pair was last at 1.1643 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.
NZD/USD is testing the lower edge of its consolidation range and the 200-day moving average near 0.5800. A failure to reclaim resistance at 0.5940 would leave the pair vulnerable to a deeper decline, with downside projections at 0.5730 and 0.5620, Société Générale's FX analysts note.
The GBP/USD pair drifts lower for the third consecutive day on Wednesday – also marking the fourth day of a negative move in the previous five – and drops to an over one-week low during the Asian session.
NZD/USD continues its three-day losing streak, trading around 0.5830 during the Asian hours on Wednesday. The pair loses ground after the Reserve Bank of New Zealand (RBNZ) announced to cut interest rates by 25 basis points, bringing the Official Cash Rate (OCR) to 3%, as expected.
Silver price (XAG/USD) extends its losing streak for the fifth consecutive session, trading around $37.20 per troy ounce during the Asian hours on Wednesday.
USD/JPY consolidated during Tuesday’s session, ending the day with minimal losses of 0.14%, with the pair trading near familiar levels, below the 20-day Simple Moving Average (SMA) at 147.86. At the time of writing, the pair trades at 147.61, virtually unchanged as Wednesday’s Asian session begins.
EUR/USD consolidates during the North American session above the 1.1600 figure as traders await the Federal Reserve (Fed) Chair Jerome Powell's speech at Jackson Hole, alongside the outcome of the Ukraine-Russia conflict solution. The pair trades at around 1.1640, down 0.12% at the time of writing.
Gold price tumbles on Tuesday as the Greenback extends its minimal gains for the second straight day, while geopolitical developments suggest that a positive outcome of the US President Trump meeting with Putin, Zelenskiy and European leaders could put an end to the ongoing war.
WTI Crude Oil remains under pressure on Tuesday, trading around $62.00 per barrel, as markets digest signs of de-escalation in the Russia-Ukraine conflict and position cautiously ahead of key macroeconomic events.
Gold (XAU/USD) edges lower during the American session on Tuesday, pressured by a firmer US Dollar and improved risk sentiment. The metal is trading near $3,320, close to the 12-day low marked during early Asian trade.
US Dollar (USD) is likely to trade in a range between 7.1780 and 7.1950. In the longer run, USD is expected to trade in a range of 7.1730/7.2000, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
The sharp rise in US Dollar (USD) has scope to extend to 148.30; the major resistance at 148.80 is unlikely to be tested. In the longer run, USD has likely moved back into a range-trading phase between 146.50 and 148.80, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
New Zealand Dollar (NZD) is likely to trade in a range of 0.5905/0.5940. In the longer run, NZD has likely entered a 0.5880/0.5980 consolidation phase, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
The bias for Australian Dollar (AUD) is tilted to the downside toward 0.6475; the major support at 0.6455 is unlikely to come into view. In the longer run, AUD is still trading in a range, probably between 0.6455 and 0.6555, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Rapidly increasing downward momentum suggests Pound Sterling (GBP) could continue to decline, potentially dropping below 1.3485. In the longer run, GBP is now neutral; it is likely to trade in a range between 1.3415 and 1.3585, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Euro (EUR) is likely to trade with a downward bias; any decline is unlikely to threaten the major support at 1.1630. In the longer run, outlook is mixed; for the time being, EUR is likely to trade in a range of 1.1630/1.1755, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
The meeting between Ukrainian President Zelensky and US President Trump yesterday certainly went better than feared. At least in comparison to the disastrous meeting in February.
Consensus is for 25bp cut to bring OCR to 3%. Slowing growth, weaker labour market, easing inflationary pressure and falling consumer confidence suggest that a 25bp cut is a done deal. NZD was last at 0.5917 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.
Yesterday’s summit between President Zelenskyy, European leaders, and President Trump in Washington didn’t deliver huge surprises but confirmed that the US is open to providing security guarantees to Ukraine.
US Dollar (USD) inched higher overnight, in absence of data. DXY was last at 98.03 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.
Tomorrow morning at 3 a.m. BST, the Reserve Bank of New Zealand (RBNZ) will announce its interest rate decision, and most analysts, including myself, expect a cut to 3%. The market has already priced in this move at over 90%.
Euro (EUR) eased lower, amid broad US Dollar (USD) rebound as markets grew cautious on Powell’s stance this Friday. Pair was last at 1.1677 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.
The USDCHF ended Monday’s session with minimal gains, yet it consolidated around the 0.8070 figure for the third straight day. At the time of writing, the pair trades at 0.8073, virtually unchanged.
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