Gold (XAU/USD) sticks to its strong intraday gains through the first half of the European session and currently trades above the $4,800 mark, close to a nearly three-week high set on Wednesday.
The USD/JPY pair trades 0.9% lower to near 158.20 during the European trading session on Wednesday. The pair faces intense selling pressure as the US Dollar (USD) underperforms across the board, following the announcement of a two-week ceasefire between the United States (US) and Iran.
Rabobank strategists Michael Every and Bas van Geffen note that a temporary ceasefire between the United States (US) and Iran has sharply reduced immediate risk premia, with Brent lower and equities higher. However, they stress this is only a short truce, leaving at least two weeks of uncertainty.
The Pound (GBP) maintains its near-term nullish bias against the Japanese Yen (JPY) intact, although bulls have been halted at the 212.80 area earlier on the day.
The USD/CAD pair extends its weekly downtrend for the third straight day and dives to a nearly two-week low on Wednesday, though it lacks follow-through selling. Spot prices trade around mid-1.3800s, down nearly 0.30% for the day, amid mixed fundamental cues.
Deutsche Bank analysts report a strong recovery in S&P 500 futures after the US–Iran two-week ceasefire announcement and easing war fears. Futures are now less than 2% below pre-strike levels and well above the late-March lows.
Silver (XAG/USD) accelerated its recovery on Wednesday, as investors unwound their US Dollar longs amid a higher appetite for risk following the announcement of a two-week ceasefire in Iran.
The AUD/USD pair climbs to around 0.7080, the highest since March 20, during the early European trading hours on Wednesday. The Australian Dollar (AUD) edges higher against the Greenback as the ceasefire between the US and Iran triggers a broad risk-on sentiment.
Switzerland Unemployment Rate s.a (MoM) remains unchanged at 3% in March
NZD/USD gains ground for the third consecutive day, trading around 0.5850 during the early European hours on Wednesday. The technical analysis of the daily chart signals a bullish reversal as the pair rises above the descending channel pattern.
Danske Research Team reports that Brent crude fell as low as USD 92 per barrel after the US-Iran ceasefire, with Oil dropping below USD 100 as risk sentiment improved.
The Pound Sterling surges against the US Dollar (USD) on Wednesday as the market sentiment turns favorable for riskier assets, is up 1% to near 1.3445 during the early European session.
