Financial markets are stable on Wednesday, with the US Dollar (USD) holding on to weekly lows across the FX board. Speculative interest is cautiously optimistic, as the excitement of a ceasefire in the Iran war fades.
Following the bearish action seen in the first half of the day on Tuesday, EUR/USD staged a decisive rebound in the American session to end the day virtually unchanged.
The GBP/USD pair continues with its struggle to make it through a technically significant 200-day Simple Moving Average (SMA) and seesaws between tepid gains/minor losses through the first half of the European session on Wednesday.
The German index fell to kick off the day on Tuesday, but in the end, we still have a lot of economic headwinds and issues to chew through.
The GBP/USD exchange rate rose slightly as odds of a negotiated settlement between the United States and Iran rose. It jumped to 1.3417 on Wednesday, up from the year-to-date low of 1.3220.
The AUD/USD pair rose slightly after the Australian Bureau of Statistics (ABS) published the latest consumer inflation report. It rose to the important resistance level at 0.7000 from this week’s low of 0.6908.