Market Roundup
• Canada BoC Interest Rate Decision 2.25%, 2.25% forecast, 2.25% previous
•US Crude Oil Inventories -2.295M, -0.200M forecast, 3.602M previous
•US Cushing Crude Oil Inventories -0.278M, 1.478M previous
•US Fed Interest Rate Decision 3.75%,3.75% forecast, 3.75% previous
Looking Ahead Economic Data (GMT)
• 23:50 Japan Foreign Bonds Buying -361.4B previous
• 23:50 Japan Foreign Investments in Japanese Stocks 874.0B previous
• 00:30 Australia NAB Business Confidence (Dec) 1 previous
• 00:30 Australia NAB Business Survey (Dec) 7 previous
• 00:30 Australia Import Price Index (QoQ) (Q4) -0.2% forecast,-0.4% previous
• 00:30 Australia Export Price Index (QoQ) (Q4) -0.9% previous
•05:00 Japan Household Confidence (Jan) 37.1 forecast,37.2 previous
Looking Ahead Events And Other Releases (GMT)
•No Events Ahead
Currency Summaries
EUR/USD : The euro dipped on Wednesday as markets absorbed the Federal Reserve’s latest rate verdict. The Federal Reserve held interest rates steady on Wednesday amid what U.S. central bank chief Jerome Powell described as a solid economy and diminished risks to both inflation and employment, an outlook that could signal a lengthy wait before any further reductions in borrowing costs. The actual rate decision, which was widely expected by financial markets, was overshadowed during the post-meeting press conference as reporters questioned Powell about threats to Fed independence and whether he intended to stay on at the central bank after his term as central bank chief ends in May, a possibility given new life after the Trump administration opened a criminal investigation into him earlier this month. Immediate resistance can be seen at 1.1653(Jan 15th high), an upside break can trigger rise towards 1.1690(50%fib).On the downside, immediate support is seen at 1.1600(38.2%fib), a break below could take the pair towards 1.1553(Lower BB).
GBP/USD: Sterling initially dipped but recovered some ground against dollar after the U.S. Federal Reserve kept interest rates steady, citing still-elevated inflation alongside solid economic growth, and gave little indication in its latest policy statement of when borrowing costs might fall again. Noting broad internal support for the decision, Powell said the Fed remains "well-positioned" to assess when or whether another rate cut may be needed. Since the Fed's last policy meeting in December, when it delivered a third straight rate cut, "the upside risks to inflation and the downside risks to employment have diminished. But they still exist," Powell said. "We think our policy is in a good place. “Both Governor Christopher Waller, a contender to replace Powell when his term as central bank chief ends in May, and Governor Stephen Miran, on leave from his job as an economic adviser at the White House, dissented in favor of a quarter-percentage-point rate cut. Immediate resistance can be seen at 1.3460(38.2%fib), an upside break can trigger rise towards 1.3496(Jan 12th high).On the downside, immediate support is seen at 1.3370(50%fib), a break below could take the pair towards 1.3331(Lower BB).
USD/CAD: The Canadian dollar strengthened against the U.S. dollar on as investors digested Bank of Canada and Fed rate decisions. The Bank of Canada is expected to hold rates steady on Wednesday, with recent data showing the economy remains stable and aligned with the central bank’s outlook despite U.S. tariff pressures.BoC Governor Tiff Macklem said after the late-October 25-basis-point cut that borrowing costs were near the right level and rates would stay on hold if the outlook remains stable.The BoC left its policy rate unchanged at 2.25% last month, the lower end of the neutral range where the economy is neither stimulated nor restrained. The Federal Reserve held interest rates steady on Wednesday amid what U.S. central bank chief Jerome Powell described as a solid economy and diminished risks to both inflation and employment, an outlook that could signal a lengthy wait before any further reductions in borrowing costs. Immediate resistance can be seen at 1.3776 (38.2%fib), an upside break can trigger rise towards 1.3880 (50%fib).On the downside, immediate support is seen at 1.3649(23.6%fib), a break below could take the pair towards 1.3623(Lower BB).
USD/JPY: The U.S. dollar rebounded on Wednesday as markets absorbed the Federal Reserve’s latest rate verdict.. The Fed held interest rates steady, citing still-elevated inflation alongside solid economic growth, but gave little indication in its latest policy statement of when borrowing costs might fall again.Both Governor Christopher Waller, a contender to replace Fed Chair Jerome Powell when his term as central bank chief ends in May, and Governor Stephen Miran, on leave from his job as an economic adviser at the White House, dissented in favor of a quarter-percentage-point rate cut.Powell said inflation in December was likely still well above the central bank’s 2% target. U.S. President Donald Trump said on Tuesday he would soon announce his pick to replace Powell. Immediate resistance can be seen at 159.21(23.6%fib) an upside break can trigger rise towards 160.00(Psychological level) .On the downside, immediate support is seen at 157.22(SMA 20) a break below could take the pair towards 156.87 (38.2%fib).
Equities Recap
European shares fell on Wednesday, weighed down by a slide in luxury stocks, while caution prevailed ahead of a run of tech sector results.
UK's benchmark FTSE 100 closed down by 0.52 percent, Germany's Dax ended down by 0.29 percent, France’s CAC finished the day down by 1.06 percent.
The Nasdaq rose slightly with a boost from chip stocks while the S&P 500 closed virtually unchanged on Wednesday as investor reactions were muted after the Federal Reserve kept interest rates unchanged as expected and gave little indication when borrowing costs might fall again.
Dow Jones closed up by 0.02 % percent, S&P 500 closed down by 0.01 % percent, Nasdaq settled up by 0.17% percent
Commodities Recap
Gold prices climbed above $5,300 per ounce for the first time on Wednesday, propelled by economic and geopolitical uncertainty, while markets absorbed the Federal Reserve’s latest rate verdict.
Spot gold was up 2.2% at $5,301.60 an ounce by 2:40 p.m. ET (1940 GMT) after touching a record $5,325.56.
U.S. gold futures for February settled 4.3% higher at $5,303.60.
Oil prices rose to their highest since late September on Wednesday on looming Iran concerns while a weak U.S. dollar lent further support.
Brent crude futures settled up 83 cents, or 1.23%, to $68.40 a barrel. U.S. West Texas Intermediate crude closed 82 cents, or 1.31%, higher at $63.21.
