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Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.
AUD/USD edges higher during the Asian session on Wednesday, recovering some of the previous day’s losses to its lowest level since March as the US Dollar stalls the hot US CPI-inspired rally amid hopes of a US-Iran peace deal. Meanwhile, hawkish comments from FOMC members have raised odds for a 50 bps rate hike in December, which favors USD bulls and should cap the Aussie amid expectations of a cautious, on-hold RBA stance.
USD/JPY struggles to build on the previous day’s strong gains to a near one-month top as intervention risk supports the Japanese Yen while hopes of a US-Iran peace deal cap the safe-haven US Dollar. Meanwhile, traders have started pricing in the probability of a 50 bps Fed rate hike in December in reaction to Tuesday’s hot US CPI report and hawkish comments from FOMC members. This favors USD bulls and should limit the downside for the currency pair.
Gold steadies following the overnight decline, trading near $4,035-$4,040 during the Asian session on Wednesday as US-Iran peace deal hopes cap the post-US CPI US Dollar rally. Meanwhile, the possibility of a jumbo 50 bps Fed rate hike in December could limit the downside for the USD and cap the non-yielding bullion, warranting caution for bullish traders.
Bitcoin declines toward $73,000 on Tuesday following October's hotter-than-expected US Consumer Price Index report, which triggered renewed concerns about the Federal Reserve's interest rate outlook.
From AI bubbles to geopolitical breakthroughs, these are some of the five ways why this outlook could go wrong – or right: A severe correction in US stocks triggered by an AI meltdown, second-round inflation effects emerge at scale or geopolitical de-escalation delivers an energy peace dividend.
