Daily market news

EUR/USD regains traction on Wednesday as the US Dollar’s (USD) upside momentum fades, allowing the Euro (EUR) to trim its earlier intraday losses. At the time of writing, EUR/USD is trading around 1.1805, rebounding from the daily low near 1.1771.

The Pound Sterling (GBP) advances during the North American session on Wednesday as the Greenback remains unchanged amid uncertainty over US trade policies, with investors awaiting results of one of the seven megacap companies after the Wall Street close.

HSBC Global Research argues that GBP/USD looks expensive versus rate differentials as markets increasingly price a more dovish Bank of England. Sterling remains pressured after a narrow February vote to hold policy.

HSBC Global Research views USD/CAD as largely driven by the broader Dollar trend, with the pair trading slightly below levels implied by rate spreads, reflecting Canadian Dollar resilience. Elevated Oil prices linked to Middle East tensions are supportive.

Rabobank’s Jane Foley notes that Prime Minister Takaichi’s decision to nominate reflationist academics to the BoJ Board has unsettled the Japanese Yen and JGBs, but she argues the overall policy tilt is unlikely to change significantly.

EUR/JPY trades around 184.60 on Wednesday at the time of writing, up 0.58% on the day, as the Japanese Yen (JPY) remains under pressure against the Euro (EUR). The bullish momentum in the cross comes amid growing uncertainty about the pace of monetary policy normalization in Japan.

Societe Generale analysts note that AUD/USD has broken out of a multi‑month consolidation and is trading near its 2023 peak after a stronger‑than‑expected Australian core CPI print.