Gold (XAU/USD) is taking a breather on Wednesday, slipping from record highs as traders shift their focus to the Federal Reserve’s (Fed) interest rate decision due at 18:00 GMT.

The Norwegian Krone (NOK) remains in the spotlight ahead of the decisive Norges Bank interest rate decision scheduled for Thursday at 08:00 GMT. The EUR/NOK pair is trading around 11.60, up 0.3% on the day, after hitting 11.54 last week, its lowest level in three months.

The Euro (EUR) trades under pressure against the Swiss Franc (CHF) on Wednesday, with EUR/CHF extending losses for the second straight session as the common currency struggles to gain traction following Eurozone inflation data.

The Bank of Canada (BoC) is widely anticipated to reduce its benchmark interest rate by a quarter percentage point on Wednesday, taking it to 2.50% after three consecutive ‘on hold’ decisions.

Canada Canadian Portfolio Investment in Foreign Securities rose from previous $9.04B to $17.41B in July

Canada Foreign Portfolio Investment in Canadian Securities came in at $26.69B, above expectations ($-1.32B) in July

United States Building Permits Change dipped from previous -2.8% to -3.7% in August

United States Housing Starts Change dipped from previous 5.2% to -8.5% in August

United States Housing Starts Change: -3.7% (August) vs previous 5.2%

United States Building Permits (MoM) below forecasts (1.37M) in August: Actual (1.312M)

United States Housing Starts (MoM) came in at 1.307M, below expectations (1.37M) in August

The United States (US) Federal Reserve (Fed) will announce monetary policy decisions and publish the revised Summary of Economic Projections (SEP), the so-called dot plot, following the September policy meeting on Wednesday. 

The Pound Sterling (GBP) clings to Tuesday's gains near 1.3640 against the US Dollar (USD) during the European trading session on Wednesday.

The USD/CAD pair ticks up to near 1.3760 during the late European session on Wednesday. The Loonie pair gains marginally ahead of monetary policy outcomes by the Bank of Canada (BoC) and the Federal Reserve (Fed) during New York trading hours.

The Euro (EUR) is soft, down a modest 0.3% against as it trades somewhat defensively with a slight pullback from Tuesday’s fresh multi-year high, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

The Canadian Dollar (CAD) is soft, down a marginal 0.1% vs. the USD into Wednesday’s dual BoC/Fed rate decisions, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

India M3 Money Supply dipped from previous 9.8% to 9.5% in September 1

The US Dollar (USD) is showing signs of stabilization heading into Wednesday’s FOMC, with modest gains against most of the G10 currencies as it attempts to claw back a portion of this week’s losses, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

EUR/USD trims gains on Wednesday, pulling back from 1.1879 highs, but remains trading above previous long-term highs, at 1.1830, as markets turn cautious heading into the Federal Reserve's (Fed) Monetary Policy Decision.

The Euro has given away some of Tuesday’s gains on Wednesday.

Gold is trading lower on Wednesday, weighed by generalised USD strength, as investors cut short Dollar positions ahead of the Fed’s decision. The Precious metal turned lower from the $3,700 record high, with bears contained above the $3.6660 area so far.

US Dollar (USD) could drop to 7.0980 before stabilisation is likely; a sustained drop below this level appears unlikely.

South Africa Retail Sales (YoY): 5.6% (July) vs 1.6%

United States MBA Mortgage Applications climbed from previous 9.2% to 29.7% in September 12

The ECB remains well-positioned to keep rates steady as wage growth trends lower, reinforcing confidence in inflation returning to target and supporting EUR/USD’s ongoing uptrend, BBH FX analysts report, BBH FX analysts report.

Strong downward momentum may lead to further US Dollar (USD) weakness, possibly toward 145.85. In the longer run, sharp increase in short-term downward momentum suggests USD could weaken to 145.85, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

The USD/JPY pair falls further to near 146.20 in the European trading session on Wednesday. The pair faces selling pressure as the US Dollar (USD) trades cautiously ahead of the Federal Reserve’s (Fed) monetary policy announcement at 18:00 GMT.

Pound Sterling (GBP) showed little reaction to the UK’s August CPI release, which broadly matched expectations, though persistently elevated core and services inflation highlight slow disinflation and reinforce stagflation risks, BBH FX analysts report.

New Zealand Dollar (NZD) could test 0.6010 but it is unlikely to be able to break clearly above this level. In the longer run, there is a chance for NZD to rise to 0.6010; the likelihood of it reaching 0.6040 is not high for now, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

The Australian Dollar is trading lower from year-to-date highs at 0.6690 on Wednesday, yet with downside attempts limited above previous highs, at the 0.6665-0.6670 area, as investors await the outcome of the Fed’s meeting, due later today.The US Dollar Index, which measures the value of the Dollar