BNY’s Bob Savage notes that Australia’s Westpac-Melbourne Institute Leading Index has slipped below trend, signaling weaker growth ahead as higher rates and the Middle East energy shock weigh on activity.

The EURUSD pair is experiencing fluctuating trading on its recent intraday levels, affected by the negative pressure that comes from its trading below EMA50, which might reduce the attempts to rise, amid the dominance of the bullish trend on short-term basis with its trading alongside supportive trend line for this track, besides the emergence of the positive signals from the relative strength indicators, after reaching oversold levels.

The EUR/USD pair trades flat at around 1.1745 during the European trading session on Wednesday. The major currency pair consolidates while the US Dollar (USD) edges lower amid hopes of a prolonged standoff between the United States (US) and Iran.

Buy the GBP/USD pair and set a take-profit at 1.3600.

The US Dollar (USD) posts minor losses against the Canadian Dollar (CAD) on Wednesday, and is testing session lows below 1.3650 at the time of writing, following rejection at the 1.3675 area on Tuesday.

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann note that AUD/USD eased to 0.7152 after recent gains, with price action offering few fresh clues. They expect intraday trading between 0.7125 and 0.7175 and see the pair locked in a 0.7060–0.7210 range over the coming weeks.

Commerzbank’s Michael Pfister argues that the extended ceasefire with Iran and ongoing closure of the Strait of Hormuz keep global inflation risks elevated, even if EUR/USD does not currently reflect this.

The US Dollar Index nudges lower to 98.30 as the US-Iran ceasefire extension shifts market sentiment. Will EUR/USD and GBP/USD capitalize on the DXY’s weakness?

USD/JPY climbed to 159.36 mid-week, with the Japanese yen losing ground for a second consecutive day. The market is pricing in the Bank of Japan’s policy outlook ahead of next week’s meeting.

The AUD/USD pair trades 0.25% higher to near 0.7170 during the European trading session on Wednesday. The Aussie pair gains as the Australian Dollar (AUD) outperforms its peers amid improved market sentiment.