The Indian Rupee (INR) weakens against the US Dollar (USD) on Wednesday. The Rupee opened on a firm note amid favorable risk sentiment but eased lower through the session as the US Dollar Index (DXY) held its ground near the previous week's low.
Gold (XAU/USD) has returned to a well-defined range on Wednesday, as markets continue to show signs of optimism following Tuesday's ceasefire between Israel and Iran.
The Euro (EUR) is quietly consolidating in a tight range around 1.16, trading just below Tuesday’s fresh multi-year high that reached levels last seen in September 2021.
Yesterday's Canadian inflation figures were broadly in line with expectations, with the only deviation being the non-seasonally adjusted month-on-month headline rate, which was slightly higher than expected, Commerzbank's FX analyst Michael Pfister notes.
Room for US Dollar (USD) to continue to edge lower against Chinese Yuan (CNH), but any decline is unlikely to reach 7.1450. In the longer run, there has been a tentative buildup in momentum; USD is likely to edge lower toward 7.1450, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
USD/CNH remains under pressure after surrendering its 50-DMA in May, with bearish momentum persisting. The pair is testing key support at 7.16, and a decisive break lower could open the door to deeper losses toward 7.13 and 7.10, Société Générale's FX analysts note.
There is a chance for US Dollar (USD) to retest 144.50 before a more sustained recovery can be expected. In the longer run, USD appears to have moved into a range trading phase between 143.50 and 146.50, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Australian Dollar (AUD) slipped modestly in early trade after May CPI came in lower at 2.1% y/y (vs. expectations of 2.3%). AUD was last seen at 0.65 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.
USD/JPY turned lower, tracking the dip in UST yields (on dovish Fed rhetoric) while oil prices hold losses (as geopolitical tensions in Middle East subsided for now). USD/JPY was last at 145.62 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.
Australian Dollar (AUD) is expected to trade in a sideways range of 0.6465/0.6515 against US Dollar (USD). In the longer run, current price movements are likely part of a broad range trading phase between 0.6385 and 0.6555, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Upward momentum has slowed somewhat, but instead of pulling back, Pound Sterling (GBP) is likely to trade in a range of 1.3555/1.3655 against US Dollar (USD).
EUR/JPY retraces its recent losses registered in the previous session, trading around 168.80 during the European hours on Wednesday. According to the technical analysis of the daily chart, the currency cross remains within the ascending channel pattern, strengthening the bullish bias.
Euro (EUR) is unlikely to rise much further against US Dollar (USD), it is more likely to trade in a range of 1.1575/1.1645. In the longer run, EUR is expected to continue to trade in a range; given the increase in volatility, it is now likely to trade between 1.1480 and 1.1660.
The EUR/USD rally stalled again in the 1.160-1.165 area and it is plausible markets may require a more compelling macro story (most likely from the US) rather than the mere unwinding of geopolitical risks for a break higher, ING's FX analyst Francesco Pesole notes.
Silver (XAG/USD) keeps trading back and forth without a clear bias, with technical indicators pointing to an increasing bearish momentum, and a key support area at $35.50, at a short distance.
The US Dollar Index (DXY), an index of the value of the US Dollar (USD) measured against a basket of six world currencies, extends the decline to near 97.90 during the early European session on Wednesday.
The USD/CAD pair builds on the previous day's bounce from the 1.3680-1.3675 area, or the weekly low, and gains some positive traction during the Asian session on Wednesday.
The USD/CNH pair halts its four-day winning streak, trading around 7.1690 during the Asian hours on Wednesday. An analysis of the daily chart indicates that the pair moves sideways within a rectangular pattern, which points to a consolidation phase.
AUD/JPY retreats amid a risk-on mood, spurred by the de-escalation of the Middle East conflict. This pushed safe-haven currencies, except for the US Dollar (USD), higher during Tuesday’s session to the detriment of the Australian Dollar (AUD).
EUR/USD extended its gains for the fourth straight day, up by 0.39%, even though it trades off the yearly highs of 1.1641, driven by US Dollar weakness spurred by a de-escalation of the Middle East conflict.
The Australian Dollar (AUD) continues to strengthen against the United States Dollar (USD) on Tuesday as traders react to signs of easing geopolitical tensions.
Gold price tumbled below $3,350 on Tuesday amid broad US Dollar weakness, as US Federal Reserve Chair Jerome Powell pushed back against reducing borrowing costs, reiterating that the impact of tariffs on inflation remains uncertain. At the time of writing, XAU/USD trades at $3,315, down over 1.50%.
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