Global markets on edge as tensions rise in the Middle East

EUR/USD is still struggling to find its balance on Wednesday, lingering below the 1.1700 milestone as neither side of the equation offers much conviction. Weaker Eurozone inflation is weighing on the Euro, while the US Dollar isn’t giving traders much to work despite the unexpected uptick in the US ISM Services PMI in December.

GBP/USD extends its pullback on Wednesday, slipping back below the 1.3500 mark and building on Tuesday’s retreat. The pair remains on the back foot, with the US Dollar also struggling to find clear direction as investors continue to assess the release of key US data.

Gold stays on the defensive on Wednesday, trading around $4,440 per troy ounce after snapping a three-day winning streak. The rally appears to have stalled near the $4,500 area, as a modest uptick in the US Dollar following key results from the domestic docket weighs on the precious metal. The move lower in bullion, however, appears somewhat contained by falling US Treasury yields across the curve.

Bitcoin extends correction below the $93,000 mark at the time of writing on Wednesday, signaling a cooldown from the early-year rally that touched $94,789 on Monday. Altcoins, including Ethereum and Ripple, are also facing headwinds amid uncertainty in market sentiment.

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Ripple (XRP) is trading downward but holding support at $2.22 at the time of writing on Wednesday, as fear spreads across the cryptocurrency market, reversing gains made from the start of the year.