Gold (XAU/USD) reverses a modest intraday dip and trades just above the $5,000 psychological mark during the first half of the European session on Wednesday.
South Africa Consumer Price Index (MoM) rose from previous 0.2% to 0.4% in February
South Africa Consumer Price Index (YoY) dipped from previous 3.5% to 3% in February
UBS' Chief Economist Paul Donovan notes that the Federal Reserve is widely expected to keep policy unchanged, with attention centered on Fed Chair Powell’s press conference. Markets are looking for Powell’s reaction to Oil prices, the war and implications for US retail gasoline.
ING strategist Francesco Pesole argues that a hawkish revision of the Federal Reserve Dot Plot could support the Dollar, with markets already pricing limited cuts.
According to UOB’s Quek Ser Leang, GBP/USD rebounded to 1.3364 and may edge higher toward 1.3410, though a clear break above that level is seen as unlikely given only modest momentum. Intraday, gains are expected to stay below 1.3390, with support at 1.3335 and 1.3320.
Silver prices (XAG/USD) broadly unchanged on Wednesday, according to FXStreet data. Silver trades at $79.37 per troy ounce, broadly unchanged 0.06% from the $79.33 it cost on Tuesday.
The Indian Rupee (INR) posts a fresh all-time low against the US Dollar (USD) at 93.00 during India's afternoon trading hours on Wednesday.
OCBC’s Sim Moh Siong and Christopher Wong note the Australian Dollar recovered after the RBA’s 5–4 split decision to deliver a second consecutive 25bp hike to 4.10%, with Governor Bullock’s remarks seen as hawkish.
Societe Generale economists expect the BoC to keep its policy rate at 2.25%, despite weaker employment and lower CPI. Markets now price about 33 bps of tightening by year-end after the Iran conflict.
USD/JPY remains under pressure for a third straight session, trading near 159.00 during Asian hours on Wednesday.
The Bank of Canada (BoC) is widely expected to keep its policy rate unchanged at 2.25% at its Wednesday meeting, effectively extending the pause it signalled back in January.
