The euro languished at multi-month lows against many of its peers early on Wednesday, having moved decisively lower overnight along with an eye-catching fall in the Swiss franc.
Traders said there was no specific trigger although the weaker euro dovetailed nicely with expectations for the European Central Bank to ease policy further. Some traders noted a big buy order in USD/CHF from a real money fund had helped push the dollar up on the euro, cracking a big barrier in the $1.3475-$1.3510 zone.
The common currency plumbed eight-month lows against the greenback and the Australian dollar at $1.3459 and A$1.4304. On the yen, it slid to its lowest in over five months at 136.58, bringing its 2014 trough of 136.25 yen back in view.
Recommended Content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.