The Mexican Peso (MXN) posts a second consecutive day of gains on Wednesday against the US Dollar (USD), slipping below 19.40 ahead of key commentary from Federal Reserve (Fed) officials that could influence the monetary policy outlook.
The US Dollar Index (DXY), which tracks the performance of the US Dollar (USD) against six major currencies, has dipped in the direction of the 100-marker, near 100.60 on Wednesday.
EUR/USD is back to trading close to the 1.120 mark, entirely driven by the swings in the dollar following the US-China deal and CPI numbers, ING's FX analyst Francesco Pesole notes.
ICE Brent rallied by almost 2.6% yesterday, reaching its highest since late April. A weaker USD following a cooler-than-expected US consumer price index (CPI) provided some tailwinds to the oil market.
The Australian Dollar (AUD) strengthened further against the US Dollar (USD) on Wednesday, with the AUD/USD pair rising close to the 0.6500 psychological level, up nearly 2% so far this week, buoyed by a combination of weaker US Consumer Price Index (CPI) data and stronger-than-expected wage growth
Another 25bp rate cut by the Reserve Bank of New Zealand on 28 May seems likely. Markets are fully pricing it in, following the RBNZ’s previous indications that growth remains a major concern, ING's FX analysts Francesco Pesole and Chris Turner note.
US Dollar (USD) is likely to trade sideways between 7.1850 and 7.2100. In the longer run, renewed downward momentum suggests 7.1700 is back in sight, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
The USD/JPY pair plunges to near 145.80 during European trading hours on Wednesday. The pair faces a sharp sell-off as the US Dollar (USD) has been hit hard by the soft United States (US) Consumer Price Index (CPI) data for April.
USD and the Australian dollar are the biggest beneficiaries in G10 from a de-escalation in US-China trade tensions, ING's FX analysts Francesco Pesole and Chris Turner note.
US Dollar (USD) is likely to trade in a range between 146.70 and 148.20. In the longer run, further USD strength is likely, but it could first trade in a range for a few days; the level to monitor is 149.30, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
USD/CAD observed volatility has eased back significantly, as the loonie seems to be trading again as an extension of US-growth sentiment – and is therefore more correlated with USD, ING's FX analysts Francesco Pesole and Chris Turner note.
New Zealand Dollar (NZD) is likely to rise further; it is unlikely to be able to break clearly above 0.5965. In the longer run, outlook is mixed; NZD is expected to trade in a 0.5835/0.6030 range, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Pound Sterling (GBP) is holding up quite well as UK Prime Minister Keir Starmer delivers some wins on trade and geopolitics, ING's FX analysts Francesco Pesole and Chris Turner note.
Scope for further Australian Dollar (AUD) strength against the US Dollar (USD), but any advance is likely part of a higher range of 0.6420/0.6515. In the longer run, to continue to rise, AUD must break and hold above 0.6515, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
In an interview with National Public Radio (NPR) on Wednesday, Federal Reserve (Fed) Bank of Chicago President Austan Goolsbee noted that some parts of the April inflation report represent the lagged nature of the data, adding that the Fed is still holding its breath.
The Japanese Yen (JPY) was one of the prime beneficiaries of the ‘sell America’ theme that we briefly saw in April, ING's FX analysts Francesco Pesole and Chris Turner note.
The US Dollar Index (DXY), which tracks the performance of the US Dollar (USD) against a basket of six major currencies, is losing ground for the second successive session, trading near 100.50 during the European hours on Wednesday.
The Turkish balance of payments data for March published yesterday are perhaps out of date already, but they brought early warning signs that foreign capital flow could reverse under political or market volatility.
Pound Sterling (GBP) could continue to rebound against US Dollar (USD), but any advance is likely limited to a test of 1.3340. In the longer run, buildup in momentum has faded; GBP is likely to trade in a 1.3140/1.3405 range, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
European Central Bank (ECB) policymaker and Bundesbank President Joachim Nagel is speaking at a panel discussion at the New Economy forum in Madrid on Wednesday.
The US Dollar (USD) depreciated significantly yesterday following the weaker-than-expected US inflation data. At first glance, this may seem logical. After all, subdued inflationary pressure favours potentially faster interest rate cuts by the Fed. However, the reaction was anything but trivial.
West Texas Intermediate (WTI) US Crude Oil prices remain depressed through the early European session on Wednesday and for now, seem to have snapped a four-day winning streak to mid-$63.00s, or over a two-week high touched the previous day.
Silver price (XAG/USD) halts its four-day winning streak, trading around $32.80 per troy ounce during the European hours on Wednesday. The metal’s safe-haven appeal has weakened amid easing global trade tensions.
Gold (XAU/USD) dips back to $3,235 on Wednesday while the worst of the selling pressure seems to be over due to a softer US Dollar (USD). The softer-than-expected inflation reading for April released on Tuesday, gave markets a push to head into Risk On assets, with the widely-feared inflation shock
European Central Bank (ECB) policymaker and Bundesbank President Joachim Nagel said on Wednesday that June's interest rate decision will depend on incoming data.
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