Daily market news

The USD/CAD pair extends its downside below 1.3900 during North American trading hours on Wednesday. The Loonie pair weakens further as the Bank of Canada (BoC) leaves its borrowing rates at 2.75%, as expected.

The USD/JPY pair struggles to hold the key support of 142.00 during North American trading hours on Wednesday, the lowest level seen in over four months. The pair faces selling pressure as the US Dollar has been hit hard by intensifying trade war between the United States (US) and China.

While a Bank of Canada hold is widely expected, it's the looming US-Canada trade tensions and the outcome of Canada's late-April election that may shape the CAD's path.

Despite global equity market moves, EUR/JPY is diverging from its usual correlations, driven by a dollar sell-off and repatriation flows from Europe and Japan.

EUR/USD recovers strongly to near 1.1390 during European trading hours on Wednesday after a slight correction on Tuesday. The major currency pair strengthens as the US Dollar (USD) resumes its downside journey after a short-lived recovery move.

The EUR/USD rally appears driven by real money flows as investors hedge dollar exposure or repatriate US assets.

Here is what you need to know on Wednesday, April 16:

The EUR/GBP cross gains momentum to near 0.8565 during the early European session on Wednesday. The Pound Sterling (GBP) weakens against the Euro (EUR) after the UK Consumer Price Index (CPI) inflation report.

The USD/CAD pair slips slightly after posting gains in the previous session, trading near 1.3940 during Wednesday’s Asian session. Technical analysis on the daily chart indicates a prevailing bearish trend as the pair continues to move lower within a descending channel.

EUR/USD is trading around 1.1340 during the Asian hours on Wednesday, rebounding after two consecutive sessions of losses.