United States Employment Cost Index below expectations (0.9%) in 3Q: Actual (0.8%)

The United States (US) Federal Reserve (Fed) will announce its interest rate decision on Wednesday, with markets widely expecting the US central bank to deliver a final 25 bps cut for 2025.

The Swiss Franc (CHF) trades slightly firmer against the US Dollar (USD) on Wednesday, with USD/CHF extending losses for a second consecutive day as the Greenback stays on the back foot ahead of the Federal Reserve’s (Fed) interest rate decision at 19:00 GMT.

The Bank of Canada (BoC) is widely expected to maintain its benchmark interest rate at 2.25% at its meeting on Wednesday. That would follow two consecutive quarter-point rate cuts in September and October.

EUR/USD has given away most of the gains taken on Wednesday's early European session and trades at the 1.1630 area, after rejection at session highs near 1.1660. Investors are looking from the sidelines, awaiting the US Federal Reserve's (Fed) monetary policy decision due later in the day.

The Australian Dollar is trading practically flat below a nearly two-month high, at 0.6654, hit on Tuesday.

Gold (XAU/USD) edges slightly lower on Wednesday, with price action contained inside the recent consolidation zone as markets brace for the Federal Reserve’s (Fed) interest rate decision. At the time of writing, XAU/USD is hovering near $4,200, down from the intraday high of $4,218.

Brazil IPCA Inflation registered at 0.18%, below expectations (0.2%) in November

United States MBA Mortgage Applications climbed from previous -1.4% to 4.8% in December 5

The Pound Sterling (GBP) trades 0.16% higher to near 1.3320 against the US Dollar (USD) during the European trading session on Wednesday. The GBP/USD pair gains as the US Dollar drops slightly amid caution ahead of the Federal Reserve’s (Fed) monetary policy announcement at 19:00 GMT.

The USD/JPY pair clings to three-day gains near 157.00 during the European trading session on Wednesday.

The Pound keeps drawing support from the broad-based Yen weakness this week and remains steady near multi-year highs, at the 208.90 area, with downside attempts contained above 208.20 so far

India M3 Money Supply up to 9.9% in November 24 from previous 9.8%

European Central Bank (ECB) President Christine Lagarde said in an interview at the Financial Times (FT) Global Boardroom Conference in London during the European trading session on Wednesday that the current monetary policy is in good shape and the central bank will might revise growth projections

Portugal Global Trade Balance rose from previous €-8.94B to €-8.458B in October

South Africa Retail Sales (YoY) dipped from previous 3.1% to 2.9% in October

China’s November CPI rose to 0.7% y/y, matching consensus, while core inflation held at 1.2% and PPI stayed in deflationary territory, keeping domestic demand weak and supporting the ongoing USD/CNH downtrend, BBH FX analysts report.

USD/CAD trades firmer above key support at 1.3800 as markets await the Fed’s decision, while the Bank of Canada is widely expected to hold rates at 2.25%, with swaps pricing a potential 25bps hike over the next year supporting the Canadian Dollar (CAD), BBH FX analysts report.

The US Dollar Index (DXY)is trading practically flat on the daily chart, following a rejection at the 99.30 area on Tuesday, with downside attempts contained above the 99.00 line, as investors bid their time awaiting the outcome of the Federal Reserve meeting, due on Wednesday, at 19:00 GMT.The DXY,

US Dollar (USD) is mixed and still trading just under its 200-DMA. 10-year Treasury yields testing the top-end of its 3.95%-4.20% range in place since September, and US equity futures are treading water, BBH FX analysts report.

United Kingdom 10-y Bond Auction climbed from previous 4.608% to 4.613%

US Dollar (USD) is likely to trade with a downward bias, but is unlikely to break below 7.0540. In the longer run, outlook for USD remains negative; the next level to watch is 7.0400, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

It's FOMC day and a 25bp rate cut – which would take the target rate to 3.50-3.75% – is around 90% priced in. The big focus will be the Summary of Economic Projections (SEP), the number of dissenters against the 25bp cut, and then Chair Powell's press conference, ING's FX analyst Chris Turner notes.

Greece Industrial Production (YoY) declined to 6.4% in October from previous 6.8%

Further US Dollar (USD) strength is not ruled out; any advance may not reach 157.20. In the longer run, USD must close above 157.20 before a move to 157.90 can be expected, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

The Indian Rupee (INR) gives back early gains and ticks up against the US Dollar (USD) during afternoon trading hours in India on Wednesday.

EUR/USD edged lower this week amid rising US rates and FOMC risk, with near-term support at 1.1585/90, while eurozone fiscal and geopolitical developments—including French budget hurdles and potential use of frozen Russian assets for Ukraine—remain in focus but are unlikely to undermine the euro’s s

The USD/CAD pair trades marginally higher around 1.3850 during the European trading session on Wednesday. The Loonie pair consolidates as investors await the monetary policy by the Bank of Canada (BoC) and the Federal Reserve (Fed), which will be announced later in the day.

Silver prices (XAG/USD) rose on Wednesday, according to FXStreet data. Silver trades at $60.97 per troy ounce, up 0.30% from the $60.79 it cost on Tuesday.

The Yen remains the worst-performing currency of the G8 majors this week. EUR/JPY downside attempts have been contained above a previous high, at the 182.00 area earlier on Wednesday, and the pair reversed previous losses to retest its highest levels in more than 30 years at 182.60.