Dogwifhat experienced a remarkable surge on Wednesday, trading 20% higher and surpassing the $1.26 mark. This rise came shortly after the cryptocurrency retested its psychological benchmark of $1 the previous day. Meanwhile, financial markets eagerly await fresh inflation data from Australia, which will be released on the same day. Analysts expect these figures to indicate further easing of price pressures by the end of 2024, potentially paving the way for a Reserve Bank of Australia (RBA) interest rate cut in its February meeting.
The gold market, however, faced challenges as prices struggled to maintain momentum from the positive movements observed earlier. Throughout the first half of the European session on Wednesday, gold prices fluctuated within a narrow trading range, unable to capitalize on previous gains. This cautious trading behavior reflects broader market sentiments, with traders hesitant to make decisive moves ahead of key Federal Reserve policy announcements.
In currency markets, WIF's Relative Strength Index (RSI) momentum indicators showed signs of recovery after bouncing back from oversold conditions. The easing selling pressure has sparked hopes for potential recovery in WIF. However, the resurgent demand for the US Dollar exerted downward pressure on the pair, as it awaited testimony from Bank of England Governor Andrew Bailey.
The GBP/USD pair also felt the impact of renewed US Dollar strength, causing it to pause its recovery and hold steady near 1.2450 during European trading on Wednesday. Traders adopted a cautious stance, refraining from making any significant directional bets in anticipation of the Federal Reserve's policy announcements.