USD/ZAR Exchange rate

EUR/USD eases to test 1.0500 in the European session on Wednesday. The pair faces headwinds from a cautious market mood and resurgent US Dollar demand, as traders expect an uptick in the US inflation data that could impact the Fed's easing trajectory while the ECB remains on track for more rate cuts. 

GBP/USD is back in the red below 1.2750 in European trading on Wednesday. The Pound Sterling loses traction amid renewed US Dollar buying as risk sentiment worsens heading into the key US CPI showdown. The US inflation data is key to gauging the pace of Fed's future rate cuts. 

Gold price retreats from over a two-week top as bulls turn cautious ahead of the US CPI report. Bets for a less dovish Fed, rising US bond yields underpin the USD and weigh on the commodity. Geopolitical risks, trade war fears and rate-cut bets should help limit losses for the XAU/USD. 

The US Consumer Price Index report for November, a key measure of inflation, will be unveiled at 13:30 GMT by the Bureau of Labor Statistics. Markets are buzzing in anticipation, as the release could trigger significant swings in the US Dollar and influence the Federal Reserve's plans for interest rates in the months ahead.

Since Donald Trump took office in 2017, trade flows and market shares have changed substantially. We think that shift is set to continue under looming tariffs and a new protectionist environment.