DBS Bank’s Philip Wee notes that Dollar bulls have built substantial long USD positions ahead of the FOMC, encouraged by Brent’s sharp rebound and expectations of a surprise rate hike by Chairman Kevin Warsh.

Deutsche Bank’s US economists expect the Federal Reserve to leave rates unchanged at a highly uncertain FOMC meeting, with markets pricing a significant chance of a hike.

Here is what you need to know on Wednesday, July 29:

BNY’s Geoff Yu highlights that INR faces strong selling pressure from a rebalancing perspective, as Indian bonds have outperformed major peers. With INR flows broadly flat, FX exposure has risen and investors are advised to keep hedging elevated after strong duration gains.

Iraqi Prime Minister (PM) Ali Faleh al-Zaydi has called for an urgent security meeting on Wednesday following joint military operation from Saudi Arabia and the United States (US), according to a statement.

Deutsche Bank analysts note that lower oil prices and bond yields supported US equities, helping the equal-weighted S&P 500 reach a record high as investors rotated into defensive and non-tech sectors.

According to a senior official from Iran, the nation doesn’t support Oman's proposal for regional joint management of Strait of Hormuz, a critical chokepoint for almost 20% of global energy supply.

ING’s Chris Turner and Padhraic Garvey expect the Bank of Japan to keep its policy rate at 1.00% on 31 July, with any modestly hawkish shift seen as unlikely to materially boost the Yen or change the USD/JPY trajectory.

The South Korean Won (KRW) extends gains for the second consecutive day against the US Dollar (USD), and is set for a 6.5% monthly rally. Strong South Korean macroeconomic data and market expectations of monetary tightening by the Bank of Korea have offset the KOSPI Index’s sell-off.

USD/IDR depreciates after two days of gains, trading around 18,120 during the Asian hours on Wednesday. However, the pair has lost ground as the US Dollar (USD) struggles ahead of the Federal Reserve’s (Fed) upcoming policy decision.

In European trade on Wednesday, the Iranian Islamic Revolutionary Guard Corps (IRGC) announces that it fired several ballistic missiles at a United States (US) air base and the military Central Command (CENTCOM) center in Jordan.

Gold prices fell in India on Wednesday, according to data compiled by FXStreet.

GBP/USD edges higher after remaining flat in the previous day, trading around 1.3300 during the Asian hours on Wednesday. The currency pair gains ground as the US Dollar (USD) struggles ahead of the Federal Reserve’s (Fed) upcoming policy decision.

US Central Command: carried out precision strikes in Iraq targeting Iran-backed groups planning attacks on US forces and Saudi oil facilities.

USD/JPY loses ground after registering minor gains in the previous day, trading around 163.70 during the Asian hours on Wednesday. The pair may regain ground as the Japanese Yen could come under pressure from rebounding oil prices.

DBS Group Research economist Radhika Rao analyzes Indonesia markets after Bank Indonesia Governor Perry Warjiyo’s unexpected resignation. She notes initial weakness in onshore assets as investors reassess implications for Rupiah stability and bonds.

Commerzbank analysts highlight that the Monetary Authority of Singapore (MAS) unexpectedly tightened policy for a second straight meeting, slightly increasing the Singapore Dollar (SGD) Nominal Effective Exchange Rate (NEER) slope while leaving the band’s centre and width unchanged.

Rabobank’s strategists Mauricio Une and Renan Alves note that tensions between the United States (US) and Iran have eased slightly with a pause in hostilities, but the outlook for global energy and markets remains highly uncertain.

BNY strategists John Velis and David Tam see elevated US supercore inflation as a key argument for further tightening but still favor a July hold.

Commerzbank’s Norman Liebke reports that Silver has fallen from USD 70 to USD 57.50 per troy ounce and that the bank has lowered its forecasts, now seeing USD 67 by year-end and USD 80 by end‑2027.

ING’s Padhraic Garvey expects the Federal Reserve (Fed) to leave rates unchanged at the upcoming Federal Open Market Committee (FOMC) meeting, with odds seen around 60:40 for no move.

US consumer sentiment loses some momentum in July, as the Conference Board’s Consumer Confidence Index recedes to 90.8 from June’s 92.2 (revised from 91.2).

TD Securities strategists argue that the Swiss Franc’s (CHF) underperformance since the February 2026 Iran shock reflects both low-yield carry dynamics and sensitivity to Gold prices.

Rabobank's Senior FX Strategist Jane Foley discusses British Pound (GBP) prospects around UK welfare reform, shifting voter polls and the upcoming Bank of England (BoE) decision. Foley highlights how PM Burnham’s fiscal choices and intra-Labour tensions could affect gilts and the Pound.

In an interview with Fox News, cited by Reuters, US President Donald Trump said that Pickaxe Mountain, an Iranian underground nuclear site, is not a big problem, adding that the United States (US) is now in a very strong position with Iran.

DBS Group Research economist Eugene Leow notes that investors remain cautious on upcoming FOMC decisions, with markets pricing a 34% chance of a July hike and nearly full odds for September.

Private-sector hiring in the US has further cooled in mid-July. According to the NER Pulse, the weekly companion to the ADP National Employment Report, companies added an average of 15K jobs per week in the four weeks ending July 11.

Commerzbank’s Michael Pfister notes that reports of the Swiss National Bank (SNB) planning to keep rates unchanged until early 2028, if accurate, clash with still-ambitious market expectations for hikes by 2027.

ING’s Frantisek Taborsky notes Central and Eastern European (CEE) rate curves have repriced sharply, with more tightening now expected in Czech Republic and Poland and further easing in Hungary.

Commerzbank’s Moses Lim argues that Bank Indonesia Governor Perry Warjiyo’s surprise resignation, following earlier high-profile departures, heightens concerns over policy continuity and institutional credibility as the Indonesian Rupiah (IDR) trades near historic lows versus the US Dollar (USD).