Oil Climbs, Metals Hesitate, Crypto Slips

Welcome to Wednesday. The calendar is finally active again, so let’s begin there.

The session started with an interest rate decision from Reserve Bank of New Zealand. Rates were left unchanged at 2.25%, fully in line with expectations. Despite the lack of surprise, the New Zealand dollar is the weakest currency on the board. That tells us the market may have been positioned for a slightly more hawkish tone, or simply that sellers are still in control technically.

Earlier we also received UK inflation data. CPI printed exactly at 3%, matching expectations. Unlike the previous UK labor data, this release did not generate a downside surprise. The reaction in sterling has been constructive, with the British pound trading firmer.

Still ahead today, we have US durable goods orders and the release of the FOMC meeting minutes, which should close the session. The minutes will be important for rate expectations and dollar positioning, especially given the recent volatility around macro releases.

In the currency market, the New Zealand dollar remains the clear underperformer. The Japanese yen and Swiss franc are also weaker. On the stronger side, we see gains in the US dollar and the British pound. This positioning suggests a mild risk-on bias combined with selective dollar strength.

Commodities are leaning bullish. Oil is pushing higher, extending recent gains. Precious metals are also moving up, with both gold and silver in positive territory. However, momentum remains subdued. Traders appear cautious after the sharp moves seen at the beginning of January. There is no aggressive chasing here, more of a controlled rebound.

Cryptocurrencies are showing a different picture. Ethereum is under pressure, and Bitcoin is also trading lower. The move is not explosive yet, but it raises the question of whether a new bearish wave is developing in the crypto space.

Overall, Wednesday is shaping up as a session of selective strength and cautious positioning. With US data and FOMC minutes still ahead, the second half of the day could bring more decisive moves.

Source: https://www.axiory.com/analytics/market-news/oil-climbs-metals-hesitate-crypto-slips