Commerzbank’s Antje Praefcke highlights uncertainty over whether Norges Bank will hike in September or wait until December. Inflation remains above target despite a recent downside surprise, while growth is described as close to normal.
Dow Jones futures gain by 0.14% to trade near 52,190 during European hours on Wednesday. Meanwhile, S&P 500 futures rise by 0.21% to trade around 7,600, while Nasdaq 100 futures advance by 0.42% to trade near 29,080.
The NZD/USD pair bounces off an over two-month low, around the 0.5735 area touched earlier this Wednesday, though it lacks any follow-through buying.
Silver price (XAG/USD) is up 1.8% to near $64.80 during the European trading session on Wednesday. The white metal trades firmly ahead of the Federal Reserve’s (Fed) monetary policy announcement at 18:00 GMT.
UOB’s Quek Ser Leang and Lee Sue Ann see USD/CHF consolidating just below major resistance at 0.8205 after trading between 0.8164 and 0.8198.
USD/CAD continues its winning streak for the sixth consecutive day, trading around 1.3930 during European hours on Wednesday. The technical analysis of the daily chart indicates that the price is positioned slightly below the top trendline of an ascending channel, suggesting an ongoing bullish bias.
ING strategists Francesco Pesole and Frantisek Taborsky note that markets fully expect the Federal Reserve to raise rates by 25bp to 4.0%, with a surprise hold seen as materially negative for the Dollar.
The US Dollar Index (DXY), which tracks the Greenback against a basket of currencies, retreats slightly from a two-week high, retested earlier this Wednesday, though it lacks follow-through selling.
Danske Bank’s Danske Research Team observes that global equities closed lower on Tuesday, with Energy the only sector in positive territory as Oil prices surged.
Deutsche Bank’s Sanjay Raja notes that United Kingdom (UK) inflation rose in August, with headline Consumer Price Index (CPI) at 3.1% year-on-year, its highest since December last year. While Core CPI and food inflation remained subdued, energy and services prices showed worrying strength.
The Euro (EUR) edged up against a softer British Pound (GBP) after UK Consumer Prices Index (CPI) data revealed that inflation grew in line with market expectations in August.
The Australian Dollar (AUD) trades slightly lower at around 0.7125 against the US Dollar (USD) during the European trading session on Wednesday.
Here is what you need to know on Wednesday, September 16:
Commerzbank economists note India’s August CPI rose to 4.8% year-on-year, above the RBI midpoint but still below the central bank’s full-year forecast. They see a more finely balanced policy outlook, with a likely hawkish hold at 5.25%.
The British Pound (GBP) ticks higher against the US Dollar (USD) on Wednesday, although the GBP/USD pair retreated to 1.3480 from session highs near 1.3500 after the release of the UK Consumer Prices Index (CPI) data for August.
UOB’s Quek Ser Leang and Lee Sue Ann keep a cautious stance on EUR/USD after the pair closed almost unchanged near 1.1543.
The British Pound (GBP) retreats from its day’s high of around 209.45 against the Japanese Yen (JPY) to near 209.15 after the release of the United Kingdom (UK) Consumer Price Index (CPI) report of August.
USD/IDR halts its four-day winning streak, trading around 17,740 during Asian hours on Wednesday. The pair depreciates as the US Dollar (USD) declines ahead of the interest rate decision by the Federal Reserve (Fed).
The Euro (EUR) trades with caution at around 1.1545 against the US Dollar (USD) during the early European trading session on Wednesday. The major currency pair is expected to remain under pressure as the Federal Reserve (Fed) is scheduled to announce the monetary policy decision at 18:00 GMT.
The Indian Rupee (INR) holds onto over-a-week long losses against the US Dollar (USD) in the opening session on Wednesday.
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $100.00 during the early European trading hours on Wednesday. WTI falls after an unexpected build in US crude inventories.
The USD/JPY pair attracts some buyers for the third straight day and touches a one-week high, around the 155.45-155.50 region, during the Asian session on Wednesday. Spot prices, however, lack follow-through as traders seem hesitant ahead of the key central bank event.
Gold prices rose in India on Wednesday, according to data compiled by FXStreet.
Asian equity markets trade with modest gains on Wednesday, tracking stability in US stock index futures, though sentiment remains cautious ahead of the highly anticipated US Federal Reserve (Fed) policy decision.
USD/CHF halts its five-day winning streak, trading around 0.8180 during Asian hours on Wednesday. The pair inches lower as the US Dollar (USD) depreciates ahead of the interest rate decision by the Federal Reserve (Fed).
The AUD/JPY cross trades in positive territory around 110.70 during the early European trading hours on Wednesday.
Gold (XAU/USD) clings to modest intraday gains through the first half of the European session on Wednesday, albeit it lacks follow-through buying and remains below $4,350. The US Dollar (USD) eases from a two-week high amid some profit-taking, offering support to the commodity.
United States (US) Treasury Yields have hit a pause after posting a fresh multi-year high on Tuesday ahead of the Federal Reserve’s (Fed) monetary policy announcement later in the day.
NZD/USD extends its losses for the third consecutive day, trading around 0.5750 during Asian hours on Wednesday.
The United Kingdom (UK) headline Consumer Price Index (CPI) climbed 3.1% over the year in August, compared to a rise of 2.9% in July, the data released by the Office for National Statistics (ONS) showed on Wednesday.
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