The United States (US) Federal Reserve (Fed) announces its interest rate decision on Wednesday. Markets widely expect the US central bank to keep the policy rate unchanged in the range of 3.5%-3.75%.

The British Pound (GBP) is trading on the back foot against the Japanese Yen (JPY) on Wednesday, with GBP/JPY under modest pressure as demand for the Yen picks up amid fresh intervention speculation.

OCBC Bank has revised its Gold forecasts higher to USD5,600/oz by end-2026, up from USD4,800/oz, reflecting recent price increases and persistent structural demand.

The Bank of Canada (BOC) is expected to keep its policy rate unchanged at 2.25% for the second consecutive meeting.

The Bank of Canada (BoC) is widely expected to leave its benchmark rate unchanged at 2.25% at Wednesday’s meeting, extending the pause it signalled back in December.

Speculation is intensifying over US President Donald Trump’s nomination of the next Chair of the Federal Reserve (Fed), an announcement that could come as early as Wednesday, while the Federal Open Market Committee (FOMC) is also holding its monetary policy meeting.

TD Securities' Global Strategy Team provides insights on the upcoming Bank of Canada Rate Decision scheduled for January. The expectation is for the overnight rate to remain at 2.25%, with a cautious tone in the policy statement.

The Euro is testing support at the 1.1960 area, trading at 1.1980 ahead of Wednesday's US session opening, after pulling back from over four-year highs at 1.2082 reached on Tuesday.

RaboResearch discusses the current state of the USD, highlighting potential negative factors impacting the currency. Concerns over Fed independence and US fiscal policies are noted, alongside signs of increased hedging among investors.

Gold (XAU/USD) is trading higher for the eighth consecutive day on Wednesday. The precious metal, however, has pulled back from all-time highs at $5,311 in the European session, returning to the mid-$5,200s as investors take positions ahead of the US Federal Reserve’s monetary policy decision.

Gold (XAU/USD) pushes deeper into uncharted territory on Wednesday, extending its gains for eight consecutive days as safe-haven demand and a softer US Dollar (USD) fuel the ongoing rally.

United States MBA Mortgage Applications dipped from previous 14.1% to -8.5% in January 23

NZD/USD halts its bullish momentum and trades around 0.6030 on Wednesday at the time of writing, down 0.20% on the day.

The Yen holds gains despite the moderate US Dollar recovery on Wednesday. The USD/JPY remains capped below the 153.00 level, trading at 152.45 at the time of writing, with three-week lows at 152.16 at a short distance ahead of the US Federal Reserve’s (Fed) monetary policy decision.

Commerzbank's report, written by Michael Pfister, indicates that the Bank of Canada is unlikely to change interest rates in the near term. The Canadian economy is slowly recovering, and inflation pressures are rising.

The Dollar has recently faced significant downward pressure, with President Trump expressing indifference to its decline, stating, "The dollar’s doing great." Brown Brothers Harriman (BBH) analysts note that the USD has undershot levels implied by rate differentials, with various structural drags co

Ireland Retail Sales (MoM) declined to -0.4% in December from previous 0.5%

Ireland Retail Sales (YoY): -0.1% (December) vs previous 2.5%

India Cumulative Industrial Output up to 3.9% in December from previous 3.3%

India Manufacturing Output up to 8.1% in December from previous 8%

India Industrial Output above expectations (5.5%) in December: Actual (7.8%)

Germany 10-y Bond Auction climbed from previous 2.83% to 2.85%

The Bank of Canada is expected to maintain its overnight target at 2.25%, a decision anticipated by forecasters and OIS markets. Recent economic data has tempered rate cut expectations, leading to a slight easing bias in the near term and a mild hiking bias later in 2026.

The Pound is trimming gains against the US Dollar on Wednesday, trading a few pips above 1.3780 at the time of writing, down from its highest levels in more than 4 years, at 1.3868.

EUR/GBP trades without a clear direction on Wednesday, hovering around 0.8690 at the time of writing and virtually unchanged on the day. Trading conditions remain subdued, as a light economic calendar in both the United Kingdom (UK) and the Eurozone encourages investors to remain cautious.

The Swiss Franc is currently threatening to strengthen against the Euro, with potential implications for the SNB's policy. The loss of confidence in US policymaking has heightened fears of currency debasement, boosting the appeal of the CHF as a store of value.

The report from BNY outlines the rebalancing needs for the Japanese Yen (JPY) following a significant selloff in Japanese government bonds (JGBs). It indicates that while there is a strong need for JPY purchases, market sentiment may remain cautious until after the upcoming election.

The EUR/USD pair showed bullish momentum on Tuesday, as short-dated EUR swap rates declined. The stronger euro poses a risk to the ECB's inflation targets, prompting concerns among policymakers.

Silver prices (XAG/USD) rose on Wednesday, according to FXStreet data. Silver trades at $112.28 per troy ounce, up 0.17% from the $112.08 it cost on Tuesday.

The US Dollar regains lost ground heading into the Federal Reserve’s (Fed) monetary policy decision on Wednesday.