Trading news

US Dollar (USD) is firmer within its multi-day tight trading range, US 10-year Treasury yields are consolidating just under 4.00%, and S&P500 futures point to further record gains in the underlying index. Today’s FOMC policy decision will guide markets, BBH FX analysts report.

The current price movements are likely part of a range-trading phase between 1.1630 and 1.1670.

EUR/JPY extends its losses for the second successive day, trading around 177.10 during the European hours on Wednesday.

Italy Trade Balance non-EU up to €2.738B in September from previous €1.777B

USD/CNY continued to trade with a heavy bias, guided lower by PBOC fix – now under 7.09. USD/CNH was last at 7.0998, OCBC's FX analysts Frances Cheung and Christopher Wong note.

Austria UniCredit Bank Manufacturing PMI: 48.8 (October) vs 47.6

Switzerland ZEW Survey – Expectations up to -7.7 in October from previous -46.4

The Bank of Canada (BoC) is widely expected to trim its benchmark interest rate by another quarter point on Wednesday, bringing it down to 2.25%. That would follow a similar move in September as the central bank continues its gradual easing cycle.

This afternoon, the Bank of Canada will begin this week's series of four G10 central bank meetings. Just under two weeks ago, the market began to anticipate another rate cut of 25 basis points, and is now consistently factoring this in with an estimated probability of around 80%.

Australian Dollar (AUD) extended its run-up, helped by a firmer AU CPI print for 3Q while prospects of better US-China relations, firmer RMB and pro-risk appetite remain supportive of AUD. Pair was last at 0.66 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.

When the Fed delivered a well-telegraphed 25bp cut in September, the US Dollar (USD) rallied. Back then, USD positioning was heavily short, and some hawkishly perceived comments by Powell exacerbated the correction, ING's FX analyst Francesco Pesole notes.

USD/JPY continued to trade lower on comments from MoF officials that they are watching JPY closely and on comments from US Treasury Secretary Scott Bessent. Pair was last at 152.27 levels.

EUR/USD retreats on Wednesday to snap a five-day rally, trading at 1.1630 after hitting one-week highs near 1.1670 on Tuesday. A stronger US Dollar, ahead of the Federal Reserve's monetary policy decision due later today, is weighing on the pair.

Bank of Canada is set to cut rates by 25bp today.

The Bank of Japan will meet on Thursday night for its penultimate monetary policy meeting this year, Commerzbank's FX analyst Volkmar Baur notes.

Dow Jones futures hold firm above 47,850 during European hours, with the S&P 500 futures and Nasdaq 100 futures gaining 0.27% and 0.48%, trading around 6,950 and 26,300, respectively, ahead of the opening of the United States (US) regular session on Wednesday.

EUR/USD lost some ground overnight and is lagging other G10 currencies this week, ING's FX analyst Francesco Pesole notes.

In September, the Reserve Bank of Australia left interest rates unchanged but hinted that it wanted to cut them further. Although it was prepared for inflation to rise slightly again over the coming months, the central bank did not appear particularly concerned.

The Pound remains heavily offered against the Japanese Yen for the second consecutive day on Wednesday.

Q3 CPI surprised to the upside, with core CPI back at the upper end of the RBA’s target range. The RBA is expected to keep the cash rate unchanged in Q4, having expected a cut previously.