fundamental_images_11The U.S. dollar was mixed against the other major currencies on Wednesday, as most majors remained confined within tight trading ranges amid a lack of fresh drivers and broad-based US dollar comeback. The drop in the dollar came after Federal Reserve Chairman Jerome Powell reiterated that the central bank would stay patient on monetary policy.

After briefly testing tops just beyond 1.1400 the figure late on Tuesday, EUR/USD is now giving away part of those gains and has receded to the 1.1390/95 band, while GBP/USD is holding the significant gains seen on Tuesday. The safe haven Yen was boosted as tensions between India and Pakistan escalated after Pakistan said it had shot down two Indian aircraft at its border.

Today’s EUR macro calendar started with the Eurozone January M3 money supply released at 09:00 GMT. Amid a lack of first-tier economic releases, a flurry of Eurozone consumer, business, economic and industrial confidence numbers will drop in at 10:00 GMT. At the same time, the speech by the ECB Vice President and Bundesbank Chairman Weidmann is scheduled.

Moving on, the NA session also has plenty of event risks, including the US goods trade balance and durable goods data slated for release at 13:30 GMT. Also, in focus remains the US pending home sales and factory orders data due at 15:00 GMT, around the same time the second round of the Fed Chair Powell’s testimony. Meanwhile, for the oil markets, the US official government crude stockpiles data due to be released by the Energy Information Administration (EIA) at 15:30 GMT will remain in the spotlight.

WTI crude oil is currently trading at $56.30 per barrel, having picked up a bid at a low of $55.05 yesterday, possibly due to an upbeat US inventory report. The American Petroleum Institute (API) reported a surprise draw in crude oil inventory of 4.2 million barrels for the week ending February 22, as opposed to the consensus estimate of 2.842 million barrels. The surprise draw saved the day for bulls, as prices looked set for a deeper drop following Monday’s 3 percent drop, which invalidated the inverse head-and-shoulders breakout confirmed on Feb. 20.

Gold traded with a mild negative bias through the early European session on Wednesday, albeit remained well within this week’s broader trading range. The precious metal failed to capitalize on the overnight rebound, which followed the Fed Chair Jerome Powell’s testimony before the Senate and met with some fresh supply amid a modest US Dollar rebound. This coupled with growing optimism over a possible resolution of the long-standing US-China trade dispute further dented the precious metal’s relative safe-haven status and collaborated to the prevalent weaker tone.