US market sentiment was downbeat, North American equities posting declines - TDS

Ross J Burland FXStreet

Analysts at TD Securities explained that market sentiment was downbeat with North American equities posting declines (SPX: -0.3%, TSX: -0.1%) to extend the risk-off session in Europe.

Key Quotes:

"Bunds sold off on comments from ECB President Draghi, who noted a "vigorous" pick-up in underlying inflation during an appearance before EU Parliament, to underperform a more modest selloff in USTs and Canadian rates, where yields rose by 1-2 bps across the curve."

"The USD saw a mixed performance against G10 FX, with DXY unchanged on the day. EUR retreated from post-Draghi highs above 1.18 to end the session flat while NZD (-0.7%) and AUD (-0.5%) traded lower on the implementation of new tariffs on Chinese imports."

What we're watching in markets

"US/China trade tensions remain one of the major themes for FX, though one of the key questions is how much is priced in versus the actual growth impact moving forward.

We think, for the majors at least, most of the negative news is priced in, suggesting FX could be less responsive to some of the daily headlines. In turn, this could reinforce the convergence of global equities into Q4."

"Treasuries will watch supply closely after Monday's 2yr auction weakness, but the overall focus will be on FOMC proceedings on Wednesday. Any news on Rosenstein/Session and the Mueller investigation will also be closely watched."

"AUDNZD in focus as the NZD was buoyed by strong Q2 GDP last week, but we expect RBNZ Governor Orr to shut down optimism and appetite for the kiwi on Thursday.:

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

EUR/USD gathers traction, approaches 1.1800

EUR/USD manages to reverse Tuesday’s pullback, advancing to two-day highs near the 1.1800 hurdle in the latter part of Wednesday’s session. The pair’s decent uptick comes on the back of the modest retracement in the US Dollar, as investors continue to closely follow developments on the trade front and news from the White House in the wake of President Trump’s SOTU speech.

GBP/USD challenges multi-day highs near 1.3530

GBP/USD leaves behind the previous day’s decline and regains fresh upside traction on Wednesday, surpassing the 1.3500 barrier in a context of a modest decline in the Greenback and a generalised improved mood in the risk-linked space. Meanwhile, the US tariff narrative continues to dictate the mood among market participants after Presidet Trump’s SOTU speech failed to surprise markets.

Gold remains bid and close to $5,200

Gold buyers are returning to the fold on Wednesday, targeting the $5,200 area and possibly beyond, after Tuesday’s corrective dip from monthly highs. The rebound in the precious metal comes as the US Dollar loses traction, with Trump’s SOTU speech offering little fresh direction and AI-related nerves continuing to ease.

Crypto Today: Bitcoin, Ethereum, XRP test rebound strength as ETF inflows return

Bitcoin, Ethereum and Ripple are gaining traction at the time of writing on Wednesday, amid persistent market doldrums. The Crypto King is up over 2% intraday, trading above $65,000 from the day’s opening of $64,058.

Nvidia earnings to influence AI trade and broader market sentiment

For the last three years, Nvidia has been the engine of the AI boom, and now Wall Street is watching to see whether that momentum can keep going. High-growth stocks have been struggling to maintain their bullish trend in 2026.

Cosmos Hub Price Forecast: ATOM rebounds slightly, bearish outlook remains intact

Cosmos Hub (ATOM) price rebounds, trading above $2.05 at the time of writing on Wednesday, after undergoing a sharp correction since last week. Weakening on-chain and derivatives data support a bearish outlook, while technical analysis remains unfavorable.