Makro

Silver (XAG/USD) remains under pressure on Wednesday as markets digest the latest interest rate decision from the Federal Reserve (Fed), with a stronger US Dollar and rising US Treasury yields weighing on the non-yielding metal.

Dow Jones Industrial Average (DJIA) futures dropped 0.8% on Wednesday, falling from a session high near 49,250 to trade about 48,770 after touching a session low around 48,740.

USD/CAD saw a sharp spike to a high near 1.3711 around the FOMC announcement before sellers reclaimed the move.

The US Dollar Index (DXY) edged higher by 0.3% on Wednesday, rising from a session low near 98.57 to trade close to 98.91 in the wake of the FOMC decision.

Gold (XAU/USD) price retreats over 1% on Wednesday as high energy prices are driving US Treasury yields soaring, signaling that investors are not expecting any rate cuts by the Federal Reserve (Fed), which is expected to hold rates unchanged late at around 18:00 GMT.

USD/JPY trades higher on Wednesday around 160.25, up 0.40% on the day and reaching a one-month high, close to the March 30 peak at 160.46.

The UK risks finding itself on the brink of recession as a result of the Iran war, a leading economics think tank has warned, as the potential damage to Rachel Reeves’ fiscal headroom and the threat of interest rates hikes has been laid bare in a new report. In what will come as dire reading for Rac

Dow Jones Industrial Average futures drifted lower through Wednesday's session, trading close to 48.8K at the time of writing after rejecting levels above 49.3K during the prior day.

NZD/USD trades lower around 0.5840 on Wednesday at the time of writing, down 0.76% on the day, as markets adopt a wait-and-see stance ahead of the Federal Reserve (Fed) monetary policy decision later in the day.

MUFG’s Derek Halpenny notes the US Dollar is broadly steady as resilient US equities and strong earnings temper risk aversion despite escalating Middle East tensions and a prolonged closure of the Strait of Hormuz.