Philip Wee of DBS Bank discusses the Federal Reserve’s expected decision to keep the Fed Funds Rate unchanged while Jerome Powell holds his final press conference as Chair.

The Bank of Canada (BoC) is widely expected to keep its monetary policy rate unchanged at 2.25% for its fourth consecutive meeting on Wednesday, requesting more time to assess the impact on inflation and economic growth from the US-Iran war.

Derek Halpenny at MUFG highlights that the Canadian Dollar (CAD) has held up well versus the US Dollar since the Middle East conflict began, with markets expecting the Bank of Canada (BoC) to keep rates unchanged but adopt a more hawkish tone.

TD Securities’ Global Strategy Team expects the Federal Reserve to keep the policy rate at 3.50–3.75% at the April FOMC meeting, describing the Committee as patient given balanced labor markets and oil-driven headline inflation.

Durable Goods Orders in the US increased $2.6 billion, or 0.8%, on a monthly basis in March to $318.9 billion, the US Census Bureau reported on Wednesday. This print followed the 1.2% contraction recorded in February and surpassed the market expectation for an increase of 0.5%.

United States Housing Starts Change dipped from previous 7.2% to -3% in February

United States Building Permits Change: 11% (February) vs -5.4%

United States Housing Starts (MoM) declined to 1.356M in February from previous 1.487M

United States Building Permits (MoM) registered at 1.372M, below expectations (1.39M) in March

United States Building Permits (MoM) rose from previous 1.376M to 1.538M in February

ING analysts highlight that Copper remains more sensitive to macro conditions than Nickel, with prices falling for a fourth day on geopolitical uncertainty and global growth concerns.

United States Wholesale Inventories rose from previous 0.8% to 1.4% in March

United States Goods Trade Balance dipped from previous $-84.6B to $-87.9B in March

United States Building Permits (MoM) declined to 1.372M in February from previous 1.376M

United States Durable Goods Orders above expectations (0.5%) in March: Actual (0.8%)

United States Housing Starts Change: 10.8% (February) vs 7.2%

United States Building Permits (MoM) above forecasts (1.39M) in March: Actual (1.538M)

United States Housing Starts (MoM) above forecasts (1.4M) in March: Actual (1.502M)

United States Durable Goods Orders registered at -1.4%, below expectations (0.5%) in March

United States Durable Goods Orders ex Defense increased to -0.3% in March from previous -1.2%

United States Durable Goods Orders ex Transportation came in at 0.9%, above forecasts (0.4%) in March

The United States (US) Federal Reserve (Fed) announces its interest rate decision on Wednesday, another pivotal meeting for markets to gauge the stance of policymakers as energy prices remain uncomfortably high amid ongoing uncertainty in the Middle East, putting the Fed’s dual mandate under strain.

UOB’s strategists Quek Ser Leang and Lee Sue Ann note AUD/USD is consolidating after failing to extend gains beyond 0.7200, trading instead between 0.7151 and 0.7195 and closing near 0.7183.

Gold (XAU/USD) trades on the back foot on Wednesday, consolidating near one-month lows as traders refrain from directional bets ahead of the Federal Reserve’s (Fed) monetary policy announcement due later in the American session at 18:00 GMT.

OCBC strategists Sim Moh Siong and Christopher Wong note USD/JPY stayed range-bound after a mildly hawkish Bank of Japan (BoJ) hold, as cautious guidance and high Oil prices erased initial Yen (JPY) gains.

Societe Generale analysts notes that the Bank of Canada (BoC) is expected to keep its policy rate at 2.25% for a fourth consecutive meeting, while higher inflation expectations could push rates toward the neutral range midpoint later this year.

The Euro (EUR) edges higher against the British Pound (GBP) for the second consecutive day on Wednesday, although it remains contained within the weekly range, with upside attempts capped below the 0.8680 area for now.

Inflation in Germany, as measured by the change in the Consumer Price Index (CPI), rose to 2.9% (preliminary estimate) in April from 2.7% in March. This print came in below the market expectation of 3%. On a monthly basis, the CPI was up 0.6%, as anticipated.

Germany Consumer Price Index (YoY) below forecasts (3%) in April: Actual (2.9%)

Germany Harmonized Index of Consumer Prices (YoY) came in at 2.9%, below expectations (3%) in April