USD/CAD is trading at 1.26269, 0.03% up since previous day close. The GBP/USD pair has slightly recovered from a one-week low, with some buying during the Asian session. Bets that the Fed won’t cut rates before the June policy meeting should limit USD losses. Traders are now focusing on the US ISM PMI and Consumer Sentiment Index for fresh impetus. The PCE Price Index showed annual inflation in January was the lowest in three years, reaffirming bets for an eventual rate cut. As seen in the chart, the pair is still hovering around the resistance area, since days, hence, a rejection is expected.

US30 is trading at 39060.5, 0.03% up since previous day close. US stock futures fell after strong gains during the session, with signs of cooling inflation boosting optimism over falling interest rates in 2024. The PCE price index data eased slightly in January, leading some bets that the Fed will begin cutting rates by June. However, inflation remained well above the Fed’s 2% annual target, raising doubts over the timing of the central bank’s potential cuts. As seen in the chart, the index is in an upside rally, hence a bullish moment is expected today.

XAU/USD is trading at 2045.15, 0.04% up since previous day close. Gold price (XAU/USD) is supported by bets for an imminent Fed rate cut later this year, with the risk-on environment limiting further gains. The US Personal Consumption Expenditures Price Index shows annual inflation was the lowest in three years, opening the door for an interest rate cut. The hawkish outlook supports elevated US Treasury bond yields, which could limit USD downside and cap the upside for the non-yielding Gold price. As seen in the chart, gold has been moving towards resistance, hence a breakout is expected, if breaches the level.