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Gold Trades Sideways as Markets Await Fed Guidance, US-Iran Peace Deal
Gold (XAU/USD) is little changed around $4,332.60 on Wednesday as investors stay cautious ahead of the Federal Reserve's monetary policy guidance and ongoing US-Iran peace negotiations.
USD Range Trading Persists as Fed Holds Steady – Societe Generale
Societe Generale strategists note the US economy shows resilient growth with sticky inflation, keeping the Fed on hold and USD range-bound. Market pricing still leans toward a rate hike in early 2025.
Yen Mildly Gains as USD/JPY Hovers Near 160 Intervention Zone
The Japanese Yen edged higher against the US Dollar on Wednesday, with USD/JPY easing to 160.20, still above the 160.00 level considered the threshold for potential intervention by Japanese authorities. Focus remains on the Federal Reserve's policy outlook.
RBA Holds Rate at 4.35%, Signals Tightening Bias Amid Slowing Growth
The Reserve Bank of Australia kept its cash rate at 4.35%, retaining a tightening bias but acknowledging slowing growth and rising unemployment, pointing to a prolonged plateau.
RaboResearch: UK CPI and Labour Data Weigh on Pound Outlook
RaboResearch notes softer UK inflation and signs of spare capacity in the labour market, which may influence the Bank of England's stance and weigh on the British Pound.
RBA Holds Rate at 4.35%, AUD/USD Little Changed – UOB
The Reserve Bank of Australia kept its cash rate unchanged at 4.35% after three consecutive 25 bps hikes. AUD/USD remained steady as the RBA adopted a hawkish pause, according to UOB Global Economics & Markets Research.
Fed Set for Hawkish Pivot as Warsh Chairs First FOMC Meeting
The Federal Reserve is expected to adopt a hawkish stance at its upcoming meeting, with Kevin Warsh chairing for the first time, despite positive headlines from the Iran conflict.
BoJ Rate Hike Fails to Boost Yen, OCBC Says
The Bank of Japan's widely anticipated 25 basis point rate hike to 1.0% and confirmation of tapering ending in 2027 provided only limited support for the yen, according to OCBC's Christopher Wong.
Riksbank Holds Rate at 1.75%, Signals Increased Hike Probability
Sweden's Riksbank kept its policy rate unchanged at 1.75%, in line with expectations, but indicated a higher probability of a rate hike later this year compared to its March assessment.
ING Sees Cyclical Drivers Fuelling US Dollar Strength into Coming Months
ING strategists say cyclical factors have reasserted themselves in FX markets, supporting a stronger US dollar over the next several months.
UK Food Inflation Benign, CPI Below 3% Despite Middle East Risks
UK food inflation remained remarkably benign in May, keeping the consumer price index below 3%. However, the Middle East crisis poses a risk of pushing costs higher later this year, with energy prices potentially driving inflation to a peak of around 3.5%.
Warsh Guidance Shapes Dollar Outlook, MUFG Says
MUFG analyst Derek Halpenny notes that Fed Chair Kevin Warsh's first post-FOMC press conference is key for the dollar outlook, as a sharp drop in Brent oil eases near-term inflation risks.
Silver Dips as Fed Decision and US-Iran Truce Weigh on Sentiment
Silver (XAG/USD) edged lower on Wednesday, trading near $69.85, down 0.25%, as traders await the Federal Reserve's policy decision and monitor a potential US-Iran truce.
Euro Struggles as ECB Rate Hike Fully Priced – ING
ING’s FX team notes that a fully priced ECB rate hike limits Euro upside, and further hawkishness may not boost EUR/USD.
AUD/USD Faces Deeper Pullback After RBA Pauses Rate Hikes
The Australian Dollar weakened against the US Dollar after the Reserve Bank of Australia held its cash rate steady, ending a streak of rate hikes and triggering a corrective decline from near the 0.7000 level.
US-Iran Peace Agreement Hopes and Fed Day in Focus
Expectations that the US and Iran will sign a peace agreement on Friday have boosted market sentiment, with 60 days of talks planned. Markets also await the Federal Reserve's latest decision.
EUR/USD Rebound Eyes 200-DMA Hurdle – Societe Generale
Societe Generale notes EUR/USD has bounced after defending the April low near 1.1500, but the rally now faces a key test at the 200-day moving average with no clear breakout signal yet.
DXY Consolidates Near 99.50 Ahead of Fed Decision
The US Dollar Index is trading in a narrow range around mid-99.00s as traders await the outcome of the FOMC meeting.
RBA Hawkish Hold, BOJ Cautious Hike, Fed's Defining Moment
The RBA left rates unchanged but signaled possible hikes due to energy costs, the BOJ raised rates cautiously, and the Fed faces a key decision.
Gold Surges 2% at Week Start on Geopolitical Shifts and Fed Bets
Spot gold (XAUUSD) rose over 2% since the week opened, reaching near $4,342 per ounce on Wednesday, driven by geopolitical changes and expectations around the Federal Reserve.
NZD/USD Falls as Markets Await Fed Decision
The New Zealand Dollar slipped against the US Dollar on Wednesday, trading near 0.5820 as caution prevailed ahead of the Federal Reserve's policy decision.
GBP/JPY Drops Below 215 on UK Inflation Miss, Intervention Fears
The British pound weakened sharply against the Japanese yen, falling below 215.00 after softer-than-expected UK consumer inflation data. The move snapped a three-day winning streak for GBP/JPY and revived speculation about possible Japanese intervention.
Kevin Warsh Key to Dollar Resilience as Brent Drops on US-Iran Deal
Kevin Warsh's stance is crucial for dollar strength, while Brent crude falls below $80 after US-Iran deal details, providing a dovish argument before the FOMC announcement.
USD/CAD Holds Gains Above 1.4000, Bullish Bias Persists
The USD/CAD pair is trading around 1.4005 in early European trading on Wednesday, maintaining gains above the 1.4000 level. A bullish bias continues despite an overbought RSI, as optimism over a US-Iran peace deal pressures crude oil prices and weighs on the commodity-linked Canadian dollar.