Commerzbank’s Michael Pfister expects the Bank of Canada (BoC) to keep rates unchanged as policymakers assess the impact of the Middle East conflict and softer inflation.
The Euro (EUR) maintains a moderate negative tone against the US Dollar (USD) on Wednesday, trading within a tight range around 1.1700.
Silver prices (XAG/USD) fell on Wednesday, according to FXStreet data. Silver trades at $72.81 per troy ounce, down 0.38% from the $73.09 it cost on Tuesday.
Deutsche Bank analysts highlight that Australian Consumer Price Index (CPI) rose 4.6% year-on-year in March, slightly below expectations, while trimmed mean inflation stayed above the Reserve Bank of Australia's (RBA) target band.
ING strategist Francesco Pesole notes the US Dollar (USD) has recovered as United States (US) equities wobble and geopolitical tensions persist.
DBS Group Research economist Radhika Rao notes that India’s 10Y bond yield is moving back towards 7% as Brent Oil trades above $110 and markets price tighter policy.
MUFG’s Michael Wan notes United Arab Emirates' (UAE) surprise decision to leave OPEC/OPEC+ from 1 May, driven by dissatisfaction with quotas and significant spare capacity.
The US Dollar (USD) posts moderate gains against a basket of majors for the second consecutive day on Wednesday and remains close to two-week highs in the area of $99.00.
AUD/USD extends its losses for the second successive day, trading around 0.7160 during the European hours on Wednesday.
Commerzbank’s Volkmar Baur explains that softer underlying inflation in Australia has reduced market confidence in another Reserve Bank of Australia (RBA) rate hike next week, after two consecutive moves in February and March.
TD Securities strategists Andrew Kelvin, Robert Both and Emma Lawrence note that Canada’s Spring Economic Update leaves the FY26-27 deficit projection near Budget 2025 levels as stronger revenues fund CAD 37.5bn of new measures.
Deutsche Bank strategists note that United States (US) equities turned lower as AI-related worries resurfaced after a report that OpenAI missed internal 2025 targets.
The Indian Rupee (INR) extends its decline against the US Dollar (USD) on Wednesday.
Gold (XAU/USD) attracts sellers for the third consecutive day on Wednesday and slides back closer to a three-week trough during the first half of the European session.
West Texas Intermediate (WTI), futures on NYMEX, trades 1.7% higher at around $99.20 during the European trading session on Wednesday.
UOB’s strategists Quek Ser Leang and Lee Sue Ann note USD/JPY remains range-bound despite a brief dip to 158.93 and rebound to 159.78, closing near 159.61.
Silver (XAG/USD) edged up from three-week lows near $72.00 earlier on Wednesday, but it failed to find acceptance above $74.00, and is trading practically flat on the daily chart at $73.10 at the time of writing.
Dow Jones futures advance 0.12%, trading near 49,350 during the European hours on Wednesday, ahead of the United States (US) regular opening. Meanwhile, S&P 500 and Nasdaq 100 futures advance 0.09% and 0.33% to near 7,180 and 27,260, respectively.
BNY’s Geoff Yu argues that US Dollar (USD) strength reflects a positive terms-of-trade shock and strong trade-weighted holdings, with limited downside rebalancing pressure.
The Bank of Canada (BoC) is widely expected to keep its monetary policy rate unchanged at 2.25% for its fourth consecutive meeting on Wednesday, requesting more time to assess the impact on inflation and economic growth from the US-Iran war.
Commerzbank analysts highlight that USD/INR rose 0.4% to 94.55, nearing its late-March all-time high, after the Reserve Bank of India (RBI) eased some curbs on Non-Deliverable Forward (NDF) offerings.
The Australian Dollar (AUD) ticks up against the New Zealand Dollar (NZD) on Wednesday, extending its rally to 1.2230 for the first time since April 2013, before pulling back to levels near 1.2200 at the time of writing.
Here is what you need to know on Wednesday, April 29:
The Japanese Yen (JPY) trades cautiously against the US Dollar (USD) at around 159.65 during the European trading session on Wednesday. The USD/JPY pair is expected to remain on the sidelines, with investors awaiting the Federal Reserve’s (Fed) monetary policy announcement at 18:00 GMT.
The GBP/JPY cross attracts fresh sellers on Wednesday and stalls the previous day's goodish bounce from the weekly low, levels just below the 215.00 psychological mark.
Danske Research Team notes that EUR/USD is trading close to 1.17 ahead of the Federal Open Market Committee (FOMC) meeting, where th e Federal Reserve (Fed) is expected to keep rates unchanged and avoid firm forward guidance.
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.
USD/CHF inches lower after registering nearly 0.5% gains in the previous day, trading around 0.7890 during the early European hours on Wednesday. The pair declines as the Swiss Franc (CHF) receives support ahead of the release of ZEW Survey – Expectations for April.
UOB’s strategists Quek Ser Leang and Lee Sue Ann note GBP/USD failed to extend gains after touching 1.3576, instead dipping to 1.3464 before closing near 1.3520.
Danske Research Team notes that global equities slipped, led by technology, even as the CBOE Volatility Index (VIX) declined, suggesting the move was not driven by macro data.
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