Makro

Rabobank's Senior Macro Strategist Bas van Geffen expects the Bank of Canada (BoC) to keep its overnight rate at 2.25% through year-end. He notes inflation had been near target before an energy-driven spike revived upside risks, but growth remains volatile and productivity weak.

EUR/JPY depreciates after three days of gains, trading around 186.70 during European hours on Wednesday. The technical analysis of the daily chart indicates the currency cross is positioned slightly below the ascending channel, signaling a possible bearish reversal.

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.

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 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.

The EUR/GBP cross flat lines around 0.8665 during the early European trading hours on Wednesday. Traders turn to a wait-and-see mode ahead of key interest rate decisions from both the European Central Bank (ECB) and the Bank of England (BoE) on Thursday.

The Pound Sterling (GBP) trades with caution against its major currency peers, higher against antipodeans, during the early European trading session on Wednesday.

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).

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.

The EUR/USD pair consolidates around 1.1700, inside Tuesday’s trading range, during the Asian trading session on Wednesday.

EUR/JPY edges lower after three days of gains, trading around 186.80 during the Asian hours on Wednesday. The currency cross declines as the Euro (EUR) struggles amid heightened risk aversion driven by uncertainty over a potential ceasefire in the Middle East.

The US Dollar Index (DXY), an index of the value of the US Dollar (USD) measured against a basket of six world currencies, currently trades near 98.65 during the Asian trading hours on Wednesday.

The USD/CAD pair seesaws between tepid gains/minor losses, below the 1.3700 mark, during the Asian session on Wednesday amid a combination of diverging forces. The lack of progress in US-Iran peace talks continues to benefit the US Dollar's (USD) reserve currency status and supports spot prices.

Reserve Bank of New Zealand (RBNZ) Governor Anna Breman said on Wednesday that “the first quarter measures of core inflation have remained stable within the target band of 1–3%.”

The AUD/JPY cross declines to around 114.50 during the early Asian trading hours on Wednesday. The Australian Dollar (AUD) softens against the Japanese Yen (JPY) following the release of the Australian inflation report.