EUR/USD trades with a mild negative bias on Wednesday amid a modest USD strength. The downside remains cushioned as traders wait for the crucial FOMC policy decision. The market attention will then shift to the ECB monetary policy meeting on Thursday. (FXStreet)

USD/CAD grapples to extend its gains on the back of subdued Crude oil prices. A firm breakthrough above 1.3600 could lead the pair to reach a 21-day EMA at 1.3620. 14-day RSI lies below the 50 mark; the 1.3550 level could act as key support. (FXStreet)

Australian Dollar hovers around a major level ahead of the US PPI, Fed policy decision. Australia’s Treasurer Jim Chalmers presented a budget forecast of AUD 1.1 billion in the MYEFO, down from the AUD 13.9 billion previous forecast. US CPI and Core CPI came in at 3.1% and 4.0% YoY, respectively, as expected. FOMC is expected to make no change in its policy rates. (FXStreet)

GBP/USD attracts some sellers to 1.2528 following the downbeat UK data. The UK GDP rate dropped 0.3% in October from 0.2% growth in September. US Consumer Price Index (CPI) data indicated that price increases in November remained moderate. Investors await the US Producer Price Index (PPI) ahead of the Fed interest rate decision. (FXStreet)

USD/CHF halts a two-day losing streak ahead of Fed policy decision. SNB is widely anticipated to hold its interest rate at 1.75% following the recent downbeat inflation. Investors await Fed Chair Jerome Powell's comments to gain insights into the interest rates trajectory. (FXStreet)

NZD/USD loses ground near 0.6100 ahead of the key US event. The new coalition government of New Zealand passed legislation to abandon the RBNZ dual mandate and focus solely on price stability. The Federal Reserve (Fed) is widely expected to hold interest rates steady at 5.25%–5.50% at its last meeting of the year. Investors will closely monitor the Federal Reserve's (Fed) monetary policy meeting ahead of New Zealand's GDP growth for Q3. (FXStreet)

The Euro extends its recovery beyond 0.8600 as UK data disappoints. UK GDP and manufacturing production deteriorate beyond expectations. These data pose a challenge for the Bank of England. (FXStreet)

USD/MXN retraces recent losses ahead of the Fed policy decision. As-expected US CPI data diminishes the likelihood of rate cuts soon. Mexico's Industrial Output data showed resilience, recording a 5.5% increase in yearly output and a 0.6% uptick in the monthly report. (FXStreet)

GBP/JPY regains positive traction on Wednesday and reverses a part of the overnight losses. The intraday uptick lost momentum after the disappointing release of the UK macro data. Reduced bets for a BoJ pivot continue to undermine the JPY and lend support to the cross. (FXStreet)

Indian Rupee loses traction on the modest US Dollar (USD) demand. Indian Consumer Price Index (CPI) surged 5.55% YoY in November vs. 4.87% prior, Food Inflation climbed to 8.70% vs. 6.61% prior. Market players will closely watch the Fed interest rate decision and the press conference. (FXStreet)

The South African rand kicked off the European session on the front foot on the back of a weaker USD as well as some positive South African specific economic data (see calendar below). Gold, mining and manufacturing production all surprised to the upside YoY for October while markets prepare themselves for the upcoming US CPI report. US inflation has been steadily declining albeit at a slower rate than many Fed officials hoped for but with other economic data showing a declining US economy, markets have ‘dovishly’ repriced expectations. This makes today’s CPI critical for short-term guidance especially after last week’s Non-Farm Payroll (NFP) beat. (DailyFX)

WTI price faces challenges on weak demand projection due to higher interest rates. Crude oil prices receive pressure on oversupply concerns as the US EIA raised its forecast for the 2023 supply estimate by 300,000 bpd from the US. Fed is expected to keep interest rate unchanged in its last policy decision of the year. (FXStreet)

Gold price drops to a fresh multi-week low on Wednesday, albeit lacks follow-through. Reduced bets for an early rate cut by the Fed continue to undermine the yellow metal. Bears now seem reluctant to place fresh bets ahead of the crucial FOMC policy decision. (FXStreet)

Core Inflation Rate YoY (NOV) 4% % Vs 4% Forecast. Inflation Rate YoY (NOV) 3.1% Vs 3.1% Forecast. Inflation Rate MoM 0.1% and Core Inflation Rate MoM 0.3%. (DailyFX)

Source: FXStreet, DailyFX

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