America’s Roundup: Dollar slides against peers after Fed cuts rates, Wall Street ends higher, Gold gains, Oil settles higher

Market Roundup

• US Employment Benefits (QoQ) (Q3)    0.80%, 0.70% previous 
   
• US Employment Cost Index (QoQ) (Q3) 0.8%, 0.9%forecast,0.9% previous  
     
•Canada BoC Interest Rate Decision    2.25%, 2.25% forecast,2.25% previous      
     
• US Crude Oil Inventories -1.812M, -1.200M forecast,0.574M previous    

• US Fed Interest Rate Decision    3.75%,3.75% forecast,4.00% previous  
 
Looking Ahead Economic Data (GMT)  

• 23:50 Japan BSI Large Manufacturing Conditions (Q4)   4.1 forecast,3.8 previous        
• 23:50 Japan Foreign Bonds Buying -771.3B previous    

• 23:50 Japan Foreign Investments in Japanese Stocks 655.6B previous
    
•00:30   Australia Employment Change (Nov) 20.0K forecast,42.2K previous 
       
•00:30  Australia Full Employment Change (Nov)   55.3K previous    

•00:30   Australia Participation Rate (Nov) 67.0% forecast,67.0% previous  
     
•00:30  Australia Unemployment Rate (Nov)  4.4% forecast,4.3% previous 
           
Looking Ahead Events And Other Releases (GMT)  

•No Events Ahead

Currency Summaries

EUR/USD :   The euro rose against the dollar on Wednesday after the Federal Reserve lowered interest rates in a widely expected move, but indicated it will likely pause its easing cycle at the next policy meeting in January.The Fed's decision to lower the benchmark policy rate by a quarter of a percentage point to the 3.50%-3.75% range drew three dissents: Chicago Fed President Austan Goolsbee and Kansas City Fed President Jeffrey Schmid argued that the policy rate should be left unchanged, while Fed Governor Stephen Miran again advocated for a larger half-percentage-point reduction.The greenback lost ground against peer currencies immediately after the Fed's announcement.The euro  last changed hands at $1.1650, up 0.2%. Immediate resistance can be seen at 1.1712(Higher BB), an upside break can trigger rise towards 1.1747(38.2%fib).On the downside, immediate support is seen at 1.1622(38.2%fib), a break below could take the pair towards 1.1603(SMA 20).

GBP/USD:    Sterling firmed against the dollar on Wednesday as investors absorbed the Federal Reserve’s anticipated quarter-point rate cut. The U.S. central bank delivered the widely expected reduction but hinted at a pause in its easing cycle at the January policy meeting.Market reaction remained subdued, with the move already priced in. Futures traders still see scope for another cut in April, though expectations are not fully reflected until June. Fed Chair Jerome Powell said after the decision that policy is well positioned to deal with future economic developments, but he offered no guidance on the timing of any further rate cuts.Attention now shifts to the UK, where final GDP figures due on Thursday are set to come back into focus as the year draws to a close.Immediate resistance can be seen at 1.3425(Higher BB), an upside break can trigger rise towards 1.3507(38.2%fib).On the downside, immediate support is seen at 1.3282(50%fib), a break below could take the pair towards 1.3222(SMA 20).

USD/CAD: The Canadian dollar firmed against its U.S. counterpart on Wednesday as investors digested interest rate decisions from both the Federal Reserve and the Bank of Canada. As expected, the Canadian central bank remained on hold after cutting its benchmark rate to a three-year low of 2.25% in October. Governor Tiff Macklem said the economy has shown overall resilience to the impact of U.S. trade measures, though uncertainty remains elevated.Meanwhile, the U.S. Federal Reserve lowered its benchmark interest rate by a quarter percentage point, also in line with expectations. Fed Chair Jerome Powell declined to signal whether another rate cut is imminent, saying the central bank is well positioned to respond to future economic developments.Oil prices, a key driver for the Canadian economy, slipped 0.2% to $58.11 a barrel as investors monitored progress in Russia-Ukraine peace talks. Immediate resistance can be seen at 1.3873 (Daily high), an upside break can trigger rise towards 1.3953 (50%fib).On the downside, immediate support is seen at 1.3779(38.2%fib), a break below could take the pair towards 1.3724(Lower BB).

USD/JPY: The dollar dipped against the yen on Wednesday after the Federal Reserve cut rates by 25 basis points, as was widely expected  and signaled it will likely pause further reductions. The Fed's decision to lower the benchmark policy rate by a quarter of a percentage point to the 3.50%-3.75% range drew three dissents. The U.S. central bank's two-day meeting showed the median policymaker sees just one quarter-percentage-point cut in 2026, the same outlook as in September. In comments following the announcement, Fed Chair Jerome Powell said the U.S. central bank interest rate policy is well positioned to respond to what lies ahead for the economy, but he declined to provide guidance on whether another interest rate cut lies in the near future. Immediate resistance can be seen at 157.50(23.6%fib) an upside break can trigger rise towards 158.00 (Psychological level) .On the downside, immediate support is seen at  155.04 (38.2%fib)  a break below could take the pair towards 154.15 (SMA 20).

Equities Recap

European shares were largely unchanged on Wednesday, as investors remained cautious ahead of the U.S. Federal Reserve’s interest rate decision and digested a series of corporate announcements.

UK's benchmark FTSE 100 closed up by 0.14 percent, Germany's Dax ended down by 0.13 percent, France’s CAC finished the day down by 0.37 percent.

Wall Street closed higher on Wednesday, following the Federal Reserve’s expected quarter-point rate cut. Investors priced in the possibility of further easing later, despite the central bank signaling a temporary pause on additional cuts for the time being.

Dow Jones closed up  by 1.05 % percent, S&P 500 closed up  by 0.68 % percent, Nasdaq settled up by 0.33%  percent.

Commodities Recap

Oil prices settled higher on Wednesday after officials said the U.S. seized an oil tanker off the coast of Venezuela, adding to concerns about immediate supplies.

Brent crude futures rose 27 cents, or 0.4%, to settle at $62.21 a barrel, while U.S. West Texas Intermediate crude futures gained 21 cents, or 0.4%, to close at $58.46 per barrel.

Gold prices rebounded on Wednesday following the Federal Reserve’s rate cut, amid lingering uncertainty over next year’s policy, while silver reached a record high.

Spot gold   rose 0.7% at $4,236.57 per ounce at 3:17 p.m. ET (2017 GMT). U.S. gold futures for February delivery settled 0.3% lower at $4,224.70.