Asia-Pacific markets fall as investors grow concerned following Fitch’s downgrade of the U.S. credit rating.

Fitch issued a statement downgrading the credit rating of the United States of America from AAA to AA+, and Fitch said that the downgrade of the credit rating of the United States came as a result of the high and increasing burden of the US government public debt, which led to the decline of Japanese stocks to their lowest daily level this year with a slight rise in gold and oil prices.

The euro (EUR) is keeping its erratic performance unchanged so far this week and is marginally falling against the US dollar (USD), spurring EUR/USD to hover around the 1.0980 area after the opening bell on the old continent on Wednesday.

The absence of relevant data in the Eurozone should leave all attention to the US calendar, as the publication of the ADP employment change is expected to be at the center of the debate. In addition, the MBA will release its weekly report on mortgage applications for the past week on July 28.

Following the US Dollar Index (DXY), the dollar has managed to keep the strong recovery in place since mid-July and is still looking to consolidate the recent breakout at 102.00 – which was helped by rising US yields and loss of some risk appeal – a galaxy linked.

During this week, the attention of market participants will be drawn toward the releases of important economic data in both the United States and Europe. These issuances are expected to challenge the recently affirmed data-driven approach adopted by both the Federal Reserve and the European Central Bank (ECB) in their decisions on interest rates.

The EUR/USD pair holds gains near 1.1000 at the start of the European session on Wednesday. The pair finds support from broadly weaker US dollars, as investors remain cautious amid the downgrade of US debt and ahead of key jobs data in the US.

The GBP/USD pair is trading below 1.2800, remaining on the defensive for the third consecutive day this Wednesday. The modest weakness of the US dollar has become a major factor weighing on major currencies. The downtrend seems to be limited ahead of the Bank of England’s decision on Thursday. US ADP coming.

WTI is struggling to maintain the bullish momentum intact after a four-day uptrend that hit the highest level since April 17 early Wednesday. The energy index remains marginalized, falling recently, around USD$81.80-85 heading to the European session as risk aversion grapples with talks about declining energy supplies.

The USD/CAD pair is gaining momentum and rising above the 1.3300 barrier heading to the early European session on Wednesday. The main pair is on track for its sixth weekly close above 1.3200.

 The USD/JPY pair slides to 142.80 as it rebounded from the intraday low heading to Wednesday’s European session. In doing so, the yen pair reverses from three-week highs while pressuring the 61.8% Fibonacci retracement level in October 2022 to January 2023.

The price of gold is holding on to moderate gains as it rebounded from three-week lows. However, the current situation of the metal remains elusive to attract XAU/USD buyers as it remains below the key support level.

Bitcoin fell to $28.6K on Tuesday, hitting its lowest since June 21 amid market concerns about the Curve Finance breakout and a potential drop in liquidity on the AAVE platform. The first cryptocurrency saw impressive bullish momentum, touching $30.0K early Wednesday morning. Although we don’t see the rapid downturn scenario being achieved, for Bitcoin now, the 50-day moving average plays the role of resistance. The chances of a rapid decline will increase sharply with Wednesday’s close below $29.2K.