The dollar held steady against its peers on Wednesday, showing little reaction to U.S. President Donald Trump’s State of the Union address which touched upon trade and budget issues but provided investors with few surprises. Meanwhile, the Yen recovered ground after Trump’s SOTU address, when the US-China trade issue was raised, and soured the risk sentiment somewhat, and as a result the USD/JPY pair dropped sharply. The Pound attempted a brief recovery stint after yesterday’s slump, as the bulls were rescued by the delayed Brexit hopes. Euro has dipped below the 1.14 handle on broad dollar strength.
The European calendar for today kicks-off with the much-awaited German factory orders data at 07:00 GMT, especially considering the recent downbeat readings the underscored Eurozone economic slowdown concerns. There is no other significant macro news from the Euro area later, while the UK docket absolutely data-empty, with the focus remaining on the Brexit-related headlines for further trading momentum.
In contrast, the NA session sees a string of economic releases from the US, including the Trade Balance, Unit Labour Costs and Non-Farm Productivity which all will release at 13:30 GMT. The official US government crude stocks data will be published at 15:30 GMT that will offer fresh impetus to the oil traders.
Oil prices edged higher for the first time in three sessions on Wednesday, although concerns over the outlook for the global economy capped gains. The WTI crude futures were at $53.74 per barrel, while International Brent crude oil futures were at $62.05 per barrel. Global economic worries have weighed on market sentiment in recent days, offsetting support from signs that global supplies are tightening.
Gold is currently trading in a sideways manner, even though fresh concerns about the U.S. economy after a back-to-back slump in durable goods orders and services sector data have boosted the yellow metal in the spot market.