GBP/USD currency pair came under some selling pressure during the Asian trading hours on Wednesday and was last seen trading just below the 1.3480 level. With this minor retreat, GBP/USD has more of a bullish feel to it and the first target on the upside is seen over 1.3550. The market is closely observing developments that could impact currency movements, particularly focusing on the economic indicators from the United States and upcoming Federal Reserve communications.
The EUR/USD pair is still drifting lower as the US Dollar continues its rebound attempt, stuck near 1.1300. Weakness in Euro is the primary theme through Wednesday’s European session against US Dollar. Now everyone on the market is looking forward at looking for new directional cues. The upcoming Fedspeak and FOMC Minutes are likely to deliver cues that may shift EUR/USD trading accordingly.
Positive economic news from the U.S. continue to build investor confidence. Accordingly, the Greenback is proofing up against the Pound Sterling. That said, the GBP/USD is sailing in choppy waters. It continues to be hit from both sides by domestic factors mixed with external pressures from the now recovering Dollar.
In terms of the currency of New Zealand, the NZD/USD pair is seeing some significant swings. The Reserve Bank of New Zealand (RBNZ) just took a highly significant policy step. Consequently, NZD/USD is headed back to 0.6000, showing the Kiwi’s resilience and keeping a bounce alive in Wednesday’s Asian-Pacific session. Market participants are parsing every word of Acting Governor Hawkesby’s comments. His views on the likely future path of interest rates will be key to dictating NZD/USD direction.
The currency market is certainly abuzz. Now GBP/USD and EUR/USD are moving in opposite directions as the US Dollar continues its upward strength. The continuing emphasis on economic data points and market actor relations with central bankers illustrates the keen challenges traders face in our current financial landscape.