The Fed left interest rates unchanged at 3.50%-3.75%, but the decision carried a distinctly hawkish edge as three officials voted for an immediate 25-basis-point increase.
West Texas Intermediate (WTI) Oil stayed muted near $83 per barrel following the Federal Reserve's (Fed) decision to hold interest rates constant on Wednesday afternoon. The price consolidation comes after recovering sharply from an intraday low near $78.90.
NZD/USD trades higher near the 0.5790 area on Wednesday, reversing its earlier decline as the US Dollar (USD) weakens sharply following the Federal Reserve’s (Fed) monetary policy announcement.
USD/JPY trades near the 163.60 area on Wednesday, recovering from its immediate post-announcement decline as investors assess a generally hawkish Federal Reserve (Fed) monetary policy decision.
The Aussie Dollar trimmed some of its earlier losses after the Federal Reserve kept rates steady, by a 9 to 3 vote, with three dissenters who supported a 25-basis-point rate hike. The AUD/USD trades at around 0.6950, down 0.32%.
The shared currency surged after the Federal Reserve (Fed) kept rates steady by a 9 to 3 vote. Three dissenters supported a 25-basis-point rate hike. The EUR/USD trades in a volatile fashion above 1.1420, up 0.3%.
The Federal Reserve (Fed) held its target range at 3.50% to 3.75% at 18:00 GMT on a 9-3 vote, with three voting members preferring an immediate quarter-point increase.
The Federal Reserve (Fed) held its target range at 3.50% to 3.75% at 18:00 GMT on a 9-3 vote, with three voting members preferring an immediate quarter-point increase, and Sterling rallied through the 1.3300 shelf it lost last week to trade just above 1.3350. None of that is a British story.
Gold price rises during the North American session after the Federal Reserve (Fed) decided to hold rates unchanged, with a 9-3 vote split, as three members of the FOMC opted to increase the fed funds rate by 25 basis points.
The Federal Reserve held its target range at 3.50% to 3.75% at 18:00 GMT on a 9-3 vote, with three voting members preferring an immediate quarter-point increase. Previews had that configuration as the hawkish tail, the outcome that would bid the Dollar and punish risk assets.
The Federal Reserve held its target range at 3.50% to 3.75% at 18:00 GMT on a 9-3 vote, with three voting members preferring an immediate quarter-point increase, and USD/CAD fell out of a session-long range to print its low just beneath 1.4050.
The Mexican Peso loses ground against the US Dollar on Wednesday as risk appetite turns sour amid the escalation of the Gulf War, while traders await the Federal Reserve’s (Fed) monetary policy decision. The USD/MXN trades at 17.51, up 0.47%.
The Bank of Canada published the deliberations behind its July 15 hold this morning, roughly half an hour before the Federal Reserve (Fed) announces whether it does the same thing.
AUD/JPY trades around 113.60 on Wednesday at the time of writing, down 0.61% on the day, after weaker-than-expected Australian inflation data triggered broad selling pressure on the Australian Dollar (AUD).
USD/CHF edges higher on Wednesday, hovering near its highest level in more than a year as hawkish Federal Reserve (Fed) expectations contrast with a steady Swiss National Bank (SNB) outlook, weighing on the Swiss Franc (CHF).
Scotiabank strategists Shaun Osborne and Eric Theoret note the US Dollar (USD) is narrowly mixed to softer ahead of the Federal Open Market Committee (FOMC), with swaps pricing a modest chance of a hike but the bank seeing that risk as much lower.
The Dow Jones Industrial Average trades just above 51,800 on Wednesday afternoon, down roughly 900 points and 1.7% from Tuesday's close.
BNY’s Geoff Yu notes that USD exposure is elevated across global portfolios, with strong buying in both equities and bonds generating sizeable rebalancing signals. The bank recommends increasing FX hedges instead of selling U.S. assets, as hedge ratios remain low and Dollar allocations high.
Silver (XAG/USD) trades around $56.90 on Wednesday at the time of writing, down 0.43% on the day. Price action remains cautious as investors avoid taking large directional positions ahead of the Federal Reserve (Fed) monetary policy announcement.
Scotiabank strategists Shaun Osborne and Eric Theoret highlight that GBP/USD is flat around 1.33, supported by stronger United Kingdom (UK) lending data and stabilizing Bank of England (BoE) expectations. They stress that UK fiscal narratives remain important for sentiment toward government debt.
ING analysts Chris Turner and Padhraic Garvey see the Bank of Japan maintaining its tightening bias after June’s move to 1.00%, with most board members viewing Japan’s neutral rate near 2.00%.
Scotiabank strategists Shaun Osborne and Eric Theoret note that EUR/USD is consolidating within a very tight range in the mid-to-upper 1.13s.
Gold (XAU/USD) trades lower near the $4,003 area on Wednesday, extending its recent decline as investors remain cautious ahead of the Federal Reserve’s (Fed) monetary policy announcement.
The Pound Sterling holds firm on Wednesday as the US-Iran conflict escalates, with US President Donald Trump warning of further attacks on Iran in retaliation for Tehran's strikes on US forces in Jordan. The GBP/USD trades below 1.3300, barely unchanged.
West Texas Intermediate (WTI) Oil jumps nearly 7% on Wednesday as the war in the Middle East keeps geopolitical risks firmly priced into the market. At the time of writing, WTI trades around $84 per barrel, snapping a three-day losing streak.
BNY’s Geoff Yu highlights that markets face a genuinely live Federal Reserve (Fed) decision, with futures implying about a 35% chance of a hike and a hold still the base case.
USD/JPY trades around 163.80 on Wednesday at the time of writing, virtually unchanged on the day, as investors remain cautious ahead of the Federal Reserve's (Fed) monetary policy decision, which is due later in the day.
Scotiabank strategists Shaun Osborne and Eric Theoret describe USD/CAD as broadly stable around 1.41, with Canadian Dollar (CAD) performance driven mainly by front‑end rate differentials despite support from stronger Oil prices.
AUD/USD trades 0.4% lower near the 0.6945 area on Wednesday, extending its recent decline as the Australian Dollar (AUD) weakens following softer-than-expected domestic inflation data.
At the post-meeting press conference, Fed Chair Kevin Warsh explains why policymakers decided to keep interest rates unchanged after the July meeting and takes questions from reporters about the decision.
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