The US Dollar (USD) extends its rally against the Swiss Franc (CHF) for the sixth consecutive day on Wednesday, as a tech rout in stock markets and the first cracks in the US-Iran peace deal have boosted demand for the safe-haven USD.
OCBC’s Sim Moh Siong and Christopher Wong note that USD/JPY has broken back above 160, but intervention fears and official warnings are limiting upside relative to other G10 pairs.
USD/IDR gains ground for the third successive day, trading around 17,980 during the European hours on Wednesday. The pair appreciates as the US Dollar (USD) strengthens on expectations of further Fed tightening.
Danske Research Team notes that the US Dollar (USD) strengthened across G10, driving EUR/USD below 1.1400. The move came alongside a broader risk-off tone, with equities lower, VIX higher and Oil prices retreating.
In a speech prepared by Bank of Japan (BoJ) Governor Kazuo Ueda and read out by Deputy Governor Ryozo Himino during the European trading session on Wednesday, Ueda stated that the monetary policy path will remain on the upside, citing risks to inflation overshooting the 2% target.
The US Dollar Index (DXY), an index of the value of the US Dollar (USD) measured against a basket of six world currencies, currently trades near 101.50 during the early European trading hours on Wednesday.
The USD/CAD pair posts a fresh over-a-year high at around 1.4225 during the European trading session on Wednesday.
United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann stay bearish on GBP/USD after the pair slipped to 1.3183, with downside momentum modest but building. Intraday, he sees scope for a test of the major 1.3160 support, while resistance is at 1.3235.
The Euro (EUR) extends losses for the fourth consecutive day against the British Pound (GBP) on Wednesday. The EUR/GBP pair has lost about 0.6% so far this week and is testing the 0.8610 area at the time of writing, its lowest level in the last 10 months.
Reserve Bank of Australia (RBA) Deputy Governor Andrew Hauser said that the central bank still has work to do to reduce inflation, which remains far too high, Reuters reported on Wednesday.
Commerzbank highlights that USD/INR has stabilised between 94.00 and 95.00 since mid-June, trading near 94.74.
ING analysts Warren Patterson and Ewa Manthey note that Gold has fallen toward $4,000 per ounce alongside a broader market sell-off, pressured by a stronger US Dollar and expectations of higher-for-longer Federal Reserve policy. Silver slumped 5%.
