Trading news

Gold (XAU/USD) builds on this week's solid recovery from a technically significant 200-day Simple Moving Average (SMA) near the $4,100 mark, or a four-month low, and climbs to the $4,600 mark during the Asian session on Wednesday.

The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, extends its gains for the second consecutive day, trading around 99.30 during the Asian hours on Wednesday.

EUR/JPY remains stronger for the fourth consecutive trading day, hovering around 184.30 during the Asian session on Wednesday. The technical analysis of the daily chart shows the spot is rising above the upper boundary of a descending triangle, which typically signals a bullish reversal.

The USD/CHF pair is up 0.15% to near 0.7895 during the Asian trading session on Wednesday. The Swiss Franc pair gains as the US Dollar (USD) continues to hold ground amid conflicts in the Middle East, which involve the United States (US), Israel, and Iran.

The NZD/USD pair loses ground to around 0.5830 during the Asian trading hours on Wednesday. The pair edges lower as traders seek safety in the US Dollar (USD) amid the ongoing conflict in the Middle East.  

Reserve Bank of New Zealand Chief Economist Paul Conway said that the central bank sees lingering slack in the economy that will shape how aggressively it responds to the inflationary aftershocks of higher oil prices, Bloomberg reported on Wednesday.

USD/CAD extends gains for the second successive day, trading around 1.3770 during the Asian hours on Wednesday. The pair gains ground as crude oil prices soften on the easing geopolitical tone, weighing on the commodity-linked Canadian Dollar (CAD).

The UK Office for National Statistics (ONS) will release the February Consumer Price Index (CPI) figures on Wednesday at 07:00 GMT, a print that will matter for markets. Consensus expectations point to inflation pressures keeping their grasp on the economy.

The GBP/USD pair attracts fresh buyers during the Asian session on Wednesday, with bulls still awaiting a sustained strength beyond the 200-day Simple Moving Average (SMA) before placing fresh bets.

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $86.85 during the Asian trading hours on Wednesday. The WTI price falls as the US-Iran talks signal hope for Middle East peace.

Silver (XAG/USD) builds on this week's goodish recovery from the $61.00 mark, or its lowest level since December 12, and gains positive traction for the fourth straight day on Wednesday.

USD/JPY edges lower after registering gains in the previous day, trading around 158.70 during the Asian hours on Wednesday. The pair weakens as the Japanese Yen (JPY) gains support following the release of the Bank of Japan’s (BoJ) January Meeting Minutes.

On Wednesday, the People’s Bank of China (PBOC) sets the USD/CNY central rate for the trading session ahead at 6.8911 compared to the previous day's fix of 6.8943 and 6.8819 Reuters estimate.

The AUD/USD pair continues with its struggle to gain any meaningful traction and extends sideways consolidative price moves during the Asian session on Wednesday.

The EUR/USD pair gathers strength to near 1.1630 during the early Asian session on Wednesday. The Euro (EUR) edges higher against the US Dollar (USD) after reports that the United States (US) and Iran may hold high-level talks as soon as Thursday. 

The Bank of Japan (BoJ) board members shared their views on the monetary policy outlook on Wednesday, per the BoJ Minutes of the January meeting.    

Federal Reserve Bank of Chicago President Austan Goolsbee said on Tuesday that energy shocks can pose risks to both sides of the central bank mandate. 

US President Donald Trump appears to be determined to reach a deal with Iran aimed at ending hostilities ‌in the Middle East, Reuters reported on Tuesday.

Federal Reserve (Fed) Governor Michael Barr said on Tuesday that the central bank may need to keep interest rates steady "for some time" before further cuts are warranted, noting continued inflation above the Fed's 2% target and the risks posed by the ongoing conflict in the Middle East.

GBP/USD is trading close to 1.3420 heading into Wednesday, holding onto most of the week's gains after a sharp round-trip from about 1.3250 on Monday's ceasefire-driven sell-off to near 1.3480 on Tuesday.