The United States (US) Federal Reserve (Fed) will announce monetary policy decisions and publish the revised Summary of Economic Projections (SEP), the so-called dot plot, following the June policy meeting on Wednesday. 

The Indian Rupee (INR) remains on the back foot against the US Dollar (USD) on Wednesday, marking its second consecutive day of weakness, despite a relatively subdued Greenback ahead of the key Federal Reserve’s interest rate decision.

US citizens filing new applications for unemployment insurance dropped to 245K for the week ending June 14, as reported by the US Department of Labor (DOL) on Thursday. This print matched initial estimates and came in below the previous week's revised tally of 250K (revised from 248K).

The US Dollar Index (DXY), which measures the value of the Greenback against a basket of six major currencies, is trading slightly lower on Wednesday after gaining about 0.7% the previous day.

United States Initial Jobless Claims in line with forecasts (245K) in June 13

United States Continuing Jobless Claims above forecasts (1.94M) in June 6: Actual (1.945M)

Gold (XAU/USD) is holding steady near $3,385 on Wednesday, supported by persistent geopolitical tensions and investor caution ahead of the Federal Reserve’s (Fed) policy decision.

United States Initial Jobless Claims 4-week average climbed from previous 240.25K to 245.5K in June 13

United States Building Permits Change rose from previous -4.7% to -2% in May

United States Building Permits (MoM) came in at 1.393M, below expectations (1.43M) in May

United States Housing Starts Change down to -9.8% in May from previous 1.6%

United States Housing Starts (MoM) registered at 1.256M, below expectations (1.36M) in May

Mexico Private Spending (QoQ) increased to -0.4% in 1Q from previous -1.4%

Mexico Private Spending (YoY) down to -0.6% in 1Q from previous 0.4%

The EUR/USD pair is showing minor gains on Wednesday following a significant decline on the previous day.

Verbal escalation between US President Donald Trump and Iranian officials has boosted fears of a wider regional war in the Middle East, with the involvement of the US, which is underpinning Crude Oil prices near four-month highs.

The Japanese Yen (JPY) is entering Wednesday’s NA session with a 0.3% gain, outperforming nearly all of the G10 currencies in an environment of mild USD weakness, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

Pound Sterling (GBP) is a relative outperformer as we head into Wednesday’s NA session, up nearly 0.3% vs. the US Dollar (USD) with a notable pop in response to the stronger than expected CPI release for the month of May.

European Central Bank (ECB) Governing Council member Mario Centeno said on Wednesday that he is very worried about the European economy's growth prospects and argued that inflation will not be at 2% without growth.

Euro (EUR) is up a modest 0.2% vs. the US Dollar (USD) and a relative performer among the G10 in an environment of mild USD weakness.

The Canadian Dollar (CAD) is little changed on the session after reversing losses through the upper 1.36s in thin trade just ahead of the Asian open earlier, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

The US Dollar (USD) has edged back a little from its overnight peaks and stocks are flat to slightly firmer while crude prices have eased a little as investors dial back geopolitical worries, at least for the moment, and focus on the Fed, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theo

British Pound’s recovery attempts from Tuesday’s lows near 1.3400 have stalled about 50 pips higher on Wednesday’s European session. Investors are wary of placing US Dollar's directional bets ahead of the ªFederal Reserve’s monetary policy decision.

At least as far as the key interest rate is concerned, today's FOMC meeting is unlikely to be particularly exciting, as it is widely expected that the Fed will leave the interest rate corridor unchanged at 4.25-4.50%.

South Africa Retail Sales (YoY) rose from previous 1.5% to 5.1% in April

South Africa Retail Sales (YoY) up to 5.1% in April from previous 1.5%

United States MBA Mortgage Applications down to -2.6% in June 13 from previous 12.5%

Markets expect the Fed to keep rates on hold today. Recent data has surprised in a dovish direction, but projections and the dot plot will shift more hawkish.

Sweden’s Riksbank delivers a 25bp rate cut, likely marking the end of its easing cycle, ING's FX analyst Francesco Pesole notes.

Geopolitical events are causing a temporary dislocation from macro-driven price action in EUR/USD, ING's FX analyst Francesco Pesole notes.