NEO/USD Exchange rate

EUR/USD extends its advance above the 1.1300 level on Wednesday, supported by ongoing weakness in the US Dollar. Persistent trade tensions and renewed concerns over US fiscal health continue to pressure the Greenback, as markets look ahead to comments from central bank officials.

GBP/USD retreats from its earlier multi-year high near 1.3470 but continues to hold a firm bullish tone on Wednesday. The Pound remains supported after UK data showed annual CPI inflation accelerated to 3.5% in April from 2.6% in March, lifting sentiment around the currency.

Gold regains the area above the $3,300 mark per troy ounce midweek, supported by growing fears of escalating tensions in the Middle East. Adding to the upward pressure, the US Dollar remains under strain amid ongoing concerns over US debt sustainability.

The recent surge in US Treasury bond yields after Moody’s cut the credit rating of the United States (US) sovereign debt could be a wake-up call for financial markets, the kind of canary in the coal mine that ends up being remembered as a turnaround signal.

Retail optimism is rising, but institutions are still treading carefully amid lingering macro and earnings risks. Policy and fiscal uncertainty remain elevated, with trade tensions, U.S. debt concerns, and a cautious Fed dominating the backdrop.