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USD/JPY Price Forecast: 20-day EMA continues to act as key barrier
The Japanese Yen (JPY) trades higher against the US Dollar (USD) on Wednesday, with USD/JPY dropping 0.1% to near 159.00. The Asia-Pacific currency gains amid firm expectations that the Bank of Japan (BoJ) will hike policy rates by 25 basis points (bps) to 1.25% in the September meeting.
Equities: Tech-led gains with softer Oil – Deutsche Bank
Deutsche Bank notes that Nvidia’s earnings have become a major macro catalyst, although the impact of positive surprises has faded in recent quarters.
US Dollar: Core PCE and Warsh remarks in focus – OCBC
OCBC Bank strategists Sim Moh Siong and Christopher Wong highlight that lower energy prices have helped pull US and European yields down, supporting a more benign macro backdrop without stoking USD debasement fears.
Australian Dollar: RBA waits as inflation sticks – Commerzbank
Volkmar Baur at Commerzbank notes that the Reserve Bank of Australia (RBA) is in wait-and-see mode after three rate hikes, assessing how inflation and the labor market evolve. July Consumer Price Index (CPI) eased to 3.5% but missed expectations, with trimmed-mean inflation stuck at 3.6%.
Canadian Dollar gives away gains amid lower oil prices, fresh trade tensions
The Canadian Dollar (CAD) reverses earlier gains against the US Dollar (USD) on Wednesday, weighed by a recent pullback in oil prices and the escalation of the trade war with the US.
Oil: Prices retreat on Gulf diplomacy – ING
ING analysts Warren Patterson and Ewa Manthey note that Oil prices are under renewed downward pressure, with ICE Brent breaking below $90/bbl as talks involving Iran, Oman and Pakistan on the Strait of Hormuz and the Middle East war progress.
Euro weakens against Japanese Yen amid firm BoJ interest rate hike prospects
The Euro (EUR) trades 0.22% lower at around 185.45 against the Japanese Yen (JPY) during the early European trading session on Wednesday.
Euro: Upside bias toward 1.1725 against US Dollar – UOB
United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann report EUR/USD broke out of its recent tight range, closing slightly higher near 1.1675 as tentative upside momentum emerges.
Sweden Producer Price Index (YoY) dipped from previous 7.4%Â to 6.4% in July
Sweden Producer Price Index (YoY) dipped from previous 7.4%Â to 6.4% in July
Sweden Producer Price Index (MoM): 0.1% (July)
Sweden Producer Price Index (MoM): 0.1% (July)
AUD/USD Price Forecast: Hot Australian CPI data boosts hawkish RBA bets
The Australian Dollar (AUD) outperforms its major currency peers on Wednesday, trading 0.2% higher to near 0.7180 against the US Dollar (USD) during the early European trading session.
ECB's Schnabel: Inflation likely to top 2% for extended period
European Central Bank (ECB) Executive Board member Isabel Schnabel said that inflation is unlikely to return to target over the medium term, and therefore further tightening will be necessary, Bloomberg reported on Wednesday.Â
EUR/USD Price Forecast: Declines to near 1.1650, overbought signals curb upside bias
The EUR/USD pair trades in negative territory near 1.1665 during the early European trading hours on Wednesday, pressured by a rebound in the US Dollar (USD). Markets turn cautious ahead of the release of the key US July Personal Consumption Expenditures (PCE) Price Index report later on Wednesday.Â