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.
MUFG’s Derek Halpenny expects the FOMC to keep policy options open, with limited changes to the Summary of Economic Projections and no alteration to the median dot profile. MUFG anticipates balanced Fed communication and subdued FX and rates volatility.
ING commodities strategists Warren Patterson and Ewa Manthey report that Gold is trading in a narrow range as the US‑Israeli conflict with Iran extends. A firmer Dollar and higher real yields offset safe‑haven demand from Middle East tensions.
Danske Research Team highlights that USD/CAD remains confined between 1.36 and 1.37 as risk-off sentiment offsets support from Canada’s net energy exporter status.
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.
Australia Westpac Leading Index (MoM) declined to -0.1% in February from previous -0.04%
GBP/USD steadies after posting gains over the previous two sessions, hovering around 1.1350 during Asian trading hours on Wednesday.
Japan Adjusted Merchandise Trade Balance: ¥-374.2B (February) vs previous ¥455.5B
The US Dollar Index (DXY), an index of the value of the US Dollar (USD) measured against a basket of six world currencies, currently trades near 99.60 during the Asian trading hours on Wednesday.
Japan Merchandise Trade Balance Total above expectations (¥-483.2B) in February: Actual (¥57.3B)
