Federal Reserve Chairman Jerome Powell explained the decision to leave the policy rate unchanged at the 4.25%–4.50% range following the June meeting and responded to questions during the post-meeting press conference.
Swiss National Bank's Monetary Policy Committee (MPC) meeting takes place tomorrow. Markets have fully priced in a 25bp cut to bring the policy rate down to zero. Pair was last at 0.8178 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.
Tensions in the Middle East continued to disrupt energy logistics as Qatar instructed LNG vessels to delay entering the Strait of Hormuz, ING's commodity experts Ewa Manthey and Warren Patterson note.
US Dollar (USD) rebounded as markets grapple a challenging environment of higher oil prices and falling equities amid ongoing geopolitical uncertainties. DXY was last at 98.64, OCBC's FX analysts Frances Cheung and Christopher Wong note.
The oil market remains on edge with the conflict between Israel and Iran entering its sixth day, ING's commodity experts Ewa Manthey and Warren Patterson note.
The UK has just released CPI figures for May. While the headline reading slowed a tad less than expected to 3.4%, and core was in line with consensus at 3.5%, the closely-monitored services CPI came in a bit below expectations at 4.7% (expected 4.8%), ING's FX analyst Francesco Pesole notes.
NZD/USD is retracing its recent losses, trading around 0.6030 during the European hours on Wednesday. The technical analysis of the daily chart suggests the potential for weakening bullish bias, as the pair tests the lower boundary of the ascending channel pattern.
European Central Bank (ECB) executive board member Fabio Panetta said on Friday, “the ECB is not pre-committing to a defined course on monetary policy.”
AUD/JPY holds gains after registering nearly 0.50% losses in the previous session, trading around 94.20 during the European hours on Wednesday. However, the upside of the currency cross could be limited due to heightened safe-haven demand, driven by escalating Middle East tensions.
Oil price increases have a greater impact on the global economy than Oil price declines. The main impact is felt via an immediate rise in headline inflation. Transport shares, net fuel imports, public debt/GDP and trade integration are key factors to watch.
European Central Bank (ECB) Governing Council member Fabio Panetta said on Wednesday that the ECB will keep a flexible approach to monetary policy decisions amid heightened risks due to the Israel-Iran conflict.
The USD/CAD is trimming some gains on Wednesday, with investors reducing USD long positions ahead of the Federal Reserve’s monetary policy meeting, due later today.
There's strong consensus that the Fed will keep rates steady and reaffirm a wait-and-see stance as they gather more information on the impact of government policies and economic developments
The GBP/JPY cross trades in negative territory near 195.05 during the early European trading hours on Wednesday. The cautious mood in the market provides some support to the Japanese Yen (JPY), a safe-haven currency.
Silver (XAG/USD) broke above the top of a descending channel from early-June highs, favoured by higher safe-haven demand on risk-off markets, and has confirmed a bullish flag.
The US Dollar Index (DXY), an index of the value of the US Dollar (USD) measured against a basket of six world currencies, attracts some sellers to around 98.55 during the early European trading hours on Wednesday.
The GBP/USD pair strengthens near 1.3460 during the early European trading hours on Wednesday. The Pound Sterling (GBP) remains firm against the Greenback after the UK Consumer Price Index (CPI) inflation report.
West Texas Intermediate (WTI) Oil price falls on Wednesday, early in the European session. WTI trades at $73.01 per barrel, down from Tuesday’s close at $73.66.Brent Oil Exchange Rate (Brent crude) is also shedding ground, trading at $75.15 after its previous daily close at $75.70.
The United Kingdom (UK) annual headline Consumer Price Index (CPI) increased by 3.4% in May after rising 3.5% in April, the data released by the Office for National Statistics (ONS) showed on Wednesday.
The USD/CHF pair weakens to near 0.8160, snapping the three-day winning streak during the early European trading hours on Wednesday. The persistent geopolitical tensions in the Middle East lift the safe-haven currency like the Swiss Franc (CHF).
West Texas Intermediate (WTI) Oil price retraces its recent gains registered in the previous session, trading around $73.00 during the Asian hours on Wednesday.
The NZD/USD pair attracts some dip-buying near the 0.6000 psychological mark during the Asian session on Wednesday and reverses a part of the previous day's retracement slide from the vicinity of the year-to-date peak.
The EUR/JPY cross posts modest gains near 166.80 during the early European session on Wednesday. Reduced bets for a Bank of Japan (BoJ) rate hike undermine the Japanese Yen (JPY) and act as a tailwind for the cross.
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