U.S. Dollar Gains, Pound Struggles

Welcome to Wednesday trading. Today’s economic calendar is packed with important data. We began with inflation figures from Australia, which came in higher than expected at 2.3% versus the forecast of 2.2%. While higher inflation often strengthens a currency, this is not the case for the Australian dollar today. It is currently one of the weakest currencies on the market.

Later in the day, we have several major events to watch, including the ADP Non-Farm Employment Change, forecasted at 139,000, and Unemployment Claims data from the U.S. The day will conclude with the release of FOMC meeting minutes, which could provide insight into the Federal Reserve’s future monetary policy stance.

The strongest currency at the moment is the U.S. dollar, followed by the Japanese yen, Canadian dollar, and Swiss franc. Meanwhile, at the bottom of the performance list, we find the Australian dollar, New Zealand dollar, and—quite surprisingly—the British pound. The pound is taking a significant hit, losing over 0.6% today, making it the weakest major currency in 2025 so far.

Commodities are showing some positive developments today. Oil continues to climb higher, and silver is making a bullish attempt, with similar positive movements seen in palladium and platinum. Gold, however, is struggling slightly and lagging behind its counterparts.

In the indices space, the DAX is having an excellent session, trading close to its long-term highs. European indices, in general, are outperforming their American counterparts, with U.S. futures losing ground during the European session. While American indices appear to be moving sideways in the mid-term, European markets are showing a stronger upward momentum.

The FOMC meeting minutes, scheduled later today, could inject fresh volatility into the markets. Traders will be watching closely for clues about future interest rate decisions and the Federal Reserve’s assessment of economic conditions. Let’s see if these events will provide the spark needed to move the charts decisively.

Source: https://www.axiory.com/analytics/market-news/u-s-dollar-gains-pound-struggles