EUR/USD is trading above 1.1050., rebounding in the early European morning on Wednesday. The US Dollar is struggling to find its feet, as traders stay on the sidelines ahead of the all-important Fed policy announcements.
GBP/USD is holding the renewed uptick at around 1.2900 in early Europe this Wednesday. The US Dollar is on the defensive, despite a cautious market mood, undermined by fresh selling in the US Treasury bond yields. Fed rate decision stays in the spotlight.
The USD/JPY pair drops below the 141.00 area after retreating from weekly highs of 141.81 ahead of the Federal Reserve (Fed) meeting. A 25 basis point (bps) rate hike is expected. However, market participants will keep an eye on Fed Chairman Jerome Powell press conference, which could hint at some clues about the possibility of interest rate guidance for the entire year. The major pair currently trades around 140.94, gaining 0.03% on the day.
AUD/USD stands on slippery grounds while marking a quick 45-pip fall after the Aussie inflation data marked disappointment on early Wednesday. Adding strength to the bearish bias could be the shift in the market sentiment ahead of the Federal Reserve (Fed) monetary policy meeting, as well as recently downbeat headlines from China.
The NZD/USD pair struggles to capitalize on its gains registered over the past two days, from the 0.6115 area or a two-week low, and edges lower during the Asian session on Wednesday. Spot prices, however, manage to hold above the 0.6200 round figure as traders keenly await cues about the Federal Reserve’s (Fed) future rate-hike path.
The USD/CAD pair attracts fresh buying following the previous day’s good two-way price swings and steadily climbs back closer to the 1.3200 mark during the Asian session on Wednesday. Spot prices, however, remain confined in a familiar trading band held over the past week or so as traders keenly await the outcome of the highly-anticipated two-day FOMC monetary policy meeting, scheduled to be announced later today.
The USD/CHF pair attracts some buying near the 0.8630 area, or a multi-day low touched during the Asian session on Wednesday and for now, seems to have stalled the previous day’s rejection slide from the 0.8700 mark, or a nearly two-week high. Spot prices, however, struggle to capitalize on the modest intraday uptick and currently trade just below mid-0.8600s, up less than 0.10% for the day.
Oil prices fell slightly on Wednesday as investors hunkered down before a widely-expected rate hike by the Federal Reserve, while signs of a potential build in U.S. inventories also weighed.
Gold Price (XAU/USD) clings to mild losses as it fails to defend the previous day’s corrective bounce off the lowest level in a week amid a cautious mood on the Federal Reserve (Fed) monetary policy day announcement day.
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