Anna 
The US Dollar (USD) faced challenges on Tuesday, with the USD Index recording its lowest daily close in two weeks near 104.00. Early on Wednesday, attempts at a rebound proved elusive as market attention turned to the impending release of the FOMC Minutes. A slate of speeches by several Federal Reserve (Fed) policymakers is anticipated later in the day, alongside the European Commission’s preliminary Consumer Confidence data for February.
The benchmark 10-year US Treasury bond yield saw a marginal decline following a three-day weekend, exerting additional pressure on the USD. Wall Street’s main indexes closed in negative territory, and during the European morning, the 10-year US yield remained below 4.3%, with US stock index futures trading marginally lower.
Despite the broader USD weakness, USD/CAD bucked the trend and closed above 1.3500 on Wednesday. The Canadian Dollar struggled to maintain resilience against peers, as soft inflation data from Canada revealed a year-on-year CPI increase of 2.4% in January, down from December’s 3.4% and below the market expectation of 3.3%.
In Asian trading, Australia’s Wage Price Index matched analysts’ estimates by rising 0.9% on a quarterly basis in Q4. AUD/USD, having closed higher for the fifth consecutive day, continued its ascent on Wednesday, trading above 0.6550.
Japan reported a 9.6% year-on-year decline in imports in January, as per data from the Ministry of Finance. USD/JPY exhibited little immediate reaction to this news, maintaining a sideways trend around 150.00 during the Asian session.
GBP/USD surpassed 1.2650 during European trading on Tuesday but retraced some gains later in the day. The pair hovered within a tight channel around 1.2620.
EUR/USD capitalized on USD weakness, advancing above 1.0800 on Tuesday and holding steady above this level during early European hours on Wednesday.
Gold capitalized on retreating yields, maintaining upward momentum on Tuesday. XAU/USD traded modestly higher at around $2,030 mid-week.
