Live Commentary

The Japanese Yen rallied on Wednesday amid speculations of another intervention by authorities. The momentum, however, runs out of steam on the back of the divergent BoJ-Fed policy outlooks. Traders now look to the second-tier US data for some impetus ahead of the NFP report on Friday.

USD/CAD may continue to advance as technical analysis suggests a resurgence of bullish sentiment. A break above the 1.3800 level might propel the pair to revisit its five-month high of 1.3846. The pair could find support around the psychological level of 1.3700 and the 23.6% Fibonacci retracement level of 1.3688.

EUR/USD surrenders intraday gains and drops to 1.0700 after strong US Q1 Labor Cost Index. The Eurozone's high inflation and strong Q1 GDP growth fail to provide a sustainable boost to the Euro. The US Dollar is expected to remain firm amid caution ahead of the Fed’s policy decision.

The Australian Dollar has weakened following the release of softer Retail Sales data on Tuesday. The Australian Dollar could regain ground due to growing expectations of the RBA delaying interest rate cuts. The US Dollar has rebounded, possibly from hawkish comments made by Fed officials, signaling no immediate necessity for rate cuts.

The Pound Sterling rises to a two-week high near 1.2550 amid an improved market mood. Investors see the BoE pivoting to interest rate cuts in the June or August meeting. The Fed’s policy decision on Wednesday and the NFP report on Friday will be the key events this week.

Gold price struggles to gain any meaningful traction amid mixed fundamental cues. A modest USD downtick lends some support amid persistent geopolitical tensions. Traders now seem reluctant ahead of the FOMC meeting and key US macro data.

AUD/USD extends rally after US core PCE beats estimates The lack of a reaction may be as a result of the US Dollar already pricing in inflationary GDP data on Thursday. Higher Australian factory gate inflation data overnight added a tailwind to AUD/USD.

The Japanese Yen weakens across the board after BoJ announced its policy decision. A shortlived spike in the Yen may be testament to an attempt by the Japanese authorities to intervene. Traders now look forward to the US PCE Price Index for some meaningful impetus.

USD/CAD loses ground due to improving risk appetite. The US Dollar depreciates following the subdued US Treasury yields. The lower Canadian Retail Sales figures have fueled speculation that the BoC might opt to reduce interest rates in June.

The Pound Sterling holds recovery to near 1.2450 on an upbeat preliminary S&P Global/CIPS PMI report for April. BoE Haskel wants to see more slack in labor demand to gain confidence that inflation will sustainably return to the 2% target. Weak US PMI for April weighed on the US Dollar.