A Reuters poll published on Wednesday showed unanimous expectations that the Federal Reserve (Fed) will keep its policy rate unchanged at its January meeting.

EUR/USD is trading near 1.1728 at the time of writing, moderately higher in the daily chart and at a short distance from the nearly three-week highs, at 1.1765 reached on Tuesday.

Since both the New Zealand Dollar (NZD) and the Australian Dollar (AUD) have links to commodities, historically they have been viewed as ‘risky’ currencies which tend to rally when growth prospects are strong and vice-versa, Rabobank's FX analyst Jane Foley reports.

Gold (XAU/USD) remains unstoppable, underpinned by a sour market sentiment on the back of escalating tensions between the US and the EU and a broader de-dollarisation process.

EUR/USD slipped closer to 1.1700 on Monday after peaking near 1.1768, as ECB President Christine Lagarde emphasized stable monetary policy and downplayed the impact of US tariff threats, BBH FX analysts report.

Gold (XAU/USD) climbs to yet another record high on Wednesday as risk sentiment deteriorates across global markets, driving investors toward safe-haven assets amid rising geopolitical and economic uncertainty.

Mexico Retail Sales (MoM) came in at 1%, above forecasts (0.1%) in November

Mexico Retail Sales (YoY) above expectations (3%) in November: Actual (4.4%)

United States MBA Mortgage Applications dipped from previous 28.5% to 14.1% in January 16

US Dollar (USD) could edge lower; any decline is likely limited to a test of 6.9470. In the longer run, USD is under mild downward pressure and could edge lower to 6.9400, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Pound Sterling (USD) is on the defensive as UK December CPI shows mixed signals, with core inflation steady and services inflation slightly below expectations, BBH FX analysts report.

USD is likely to trade in a range between 157.60 and 158.60. In the longer run, USD appears to have entered a consolidation phase between 157.10 and 159.10, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

The Pound Sterling (GBP) underperforms its major peers on Wednesday after the United Kingdom's (UK) Office for National Statistics (ONS) reported that inflation grew at a faster-than-projected pace in December.

United States (US) Commerce Secretary Howard Lutnick said during European trading hours on Wednesday that the trade deal between the European Union and Washington is long-lasting.

The Indian Rupee (INR) plunges to record lows against the US Dollar (USD) on Wednesday.

Markets steadied following yesterday’s shake-out. Japanese government bonds rebounded, dragging other sovereigns up, while the slide in stocks and the dollar paused.

The Euro pulled back against the British Pound following strong UK CPI figures earlier on Wednesday, to find buyers ahead of the 0.8700 psychological level, and bounce up to explore fresh three-week highs, above 0.8730 at the time of writing

New Zealand Dollar (NZD) is likely to trade in a range between 0.5790 and 0.5850. In the longer run, further NZD strength is not ruled out, but it must first surpass 0.5855 before a move to 0.5885 can be expected, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Swiss National Bank (SNB) Chairman Martin Schlegel said during European trading hours on Wednesday that there is a high possibility of “negative inflation prints this year”, and, however, a few months of negative inflation “wouldn't be a problem”.

The dollar sell-off reflected spillovers from Japanese bond volatility and renewed sensitivity to fiscal risks, though a rebound in long-dated JGBs has eased pressure. -With Trump meeting EU leaders in Davos and signalling willingness to compromise, geopolitical de-escalation could lend the dollar m

South Africa Retail Sales (YoY) climbed from previous 2.9% to 3.5% in November

Australia Dollar (AUD) could trade sideways between 0.6700 and 0.6745. In the longer run, there is a chance for AUD to test the significant resistance at 0.6765, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Pound Sterling’s (GBP) recent weakness reflects lingering sensitivity to bond-market volatility, though calmer conditions may allow EUR/GBP to drift back below 0.870. - December UK inflation data offered little new for the Bank of England, with core services steady at 4.0% and a modest headline upti

Germany 30-y Bond Auction up to 3.49% from previous 3.45%

The near-term bias is tilted to the upside, but Pound Sterling (GBP) may not break above 1.3505, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

United States (US) President Donald Trump is scheduled to deliver a keynote speech at the World Economic Forum (WEF) held in Davos at 13:30 GMT.

Brief concerns over a European pullback from US assets faded quickly, with markets showing little follow-through despite Davos-driven hopes of geopolitical easing, ING's FX analyst Francesco Pesole notes.

Instead of continuing to rise, EUR is more likely to consolidate between 1.1690 and 1.1770. In the longer run, risk for EUR remains on the upside; the probability of it breaking above 1.1805 is not high for now, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

United Kingdom DCLG House Price Index (YoY) above forecasts (1.8%) in November: Actual (2.5%)

LME Copper has stalled near strong resistance at 13,400, with weakening momentum suggesting a potential near-term consolidation, Société Générale's FX analysts note.