EUR/USD
The Euro (EUR) is trading lower against the US Dollar (USD) for the second consecutive day on Wednesday, retreating below 1.1700 at the time of writing, from 1.1720 highs during the Asian session, yet moving within previous days’ ranges. The US Dollar is drawing some support from cautious markets with investors positioning ahead of the US Federal Reserve’s (Fed) decision, and with hopes of a negotiated end to the Iran war fading.
GBP/USD
GBP/USD eased 0.12% on Tuesday, closing near 1.3520 and continuing the broader consolidation around 1.3500 that has held through recent sessions. The pair traded in a roughly 115-pip range between 1.3465 and 1.3580, with an early European push to the session high faded through the New York session before bargain hunters lifted price off the lows. A cluster of small-bodied candles formed about 1.3520 into the close, suggesting positioning is squared away ahead of the Bank of England (BoE) and the Federal Reserve (Fed).
USD/JPY
The USD/JPY pair struggles to capitalize on the previous day’s goodish rebound from sub-159.00 levels, touched in reaction to the Bank of Japan’s (BoJ) hawkish pause, and oscillates in a range during the Asian session on Wednesday. Spot prices hold steady above the 159.50 region as traders look to the crucial FOMC decision for some meaningful impetus amid mixed cues.
AUD/USD
The AUD/USD pair continues with its struggle to conquer the 0.7200 mark and attracts some sellers during the Asian session on Wednesday, following the release of Australian consumer inflation figures. The data falls short of expectations and exerts some pressure on the Australian Dollar (USD). Furthermore, the US-Iran peace talks uncertainty underpins the safe-haven US Dollar (USD) and drags spot prices to the 0.7160 area, though the downside remains cushioned ahead of the FOMC policy update.
NZD/USD
The NZD/USD pair attracts some sellers to around 0.5865 during the early European session on Wednesday. Traders prefer to wait on the sidelines ahead of the US Federal Reserve (Fed) interest rate decision later on Wednesday, with no change in rate expected. Jerome Powell’s press conference will be closely watched.
USD/CAD
The USD/CAD pair clings to Tuesday’s gains around 1.3690 during the European trading session on Wednesday. The Loonie pair reflects strength as the US Dollar (USD) trades higher ahead of the Federal Reserve’s (Fed) monetary policy announcement at 18:00 GMT.
USD/CHF
USD/CHF edges higher on Tuesday as uncertainty around US-Iran efforts to end the war keeps risk sentiment fragile, supporting demand for the US Dollar (USD) while the Swiss Franc (CHF) struggles to gain despite its safe-haven appeal, amid Swiss National Bank (SNB) warnings of readiness to act against excessive currency moves.
CRUDE OIL
Oil prices steadied near a one-month high in choppy trade on Wednesday, as markets weighed the impact of the United Arab Emirates’ decision to leave the OPEC producer group and ongoing disruptions in the Middle East.
Gold (XAU/USD) remains depressed below the $4,600 mark heading into the European session, though bears seem hesitant and opt to wait for the crucial FOMC policy decision, due to be announced later this Wednesday. The key focus will be on the post-meeting press conference, where comments from the outgoing US Federal Reserve (Fed) Chair Jerome Powell will be scrutinized for cues about the future policy path. The outlook, in turn, will play a key role in influencing the near-term US Dollar (USD) price dynamics and provide some meaningful impetus to the non-yielding yellow metal.
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