TradingKey - The Federal Reserve is set to announce its policy decision this Wednesday, which will also be the first rate-setting meeting chaired by the new Chairman, Kevin Warsh. Currently, global in

USD/IDR extends its losses for the second successive day, trading around 17,720 during the European hours on Tuesday. The pair loses ground as the US Dollar (USD) pares its daily gains despite prevailing market caution.

The British Pound (GBP) is facing compounding pressures ahead of the Bank of England (BoE) interest-rate decision on Thursday. Financial markets have pushed back expectations for rate hikes to later in the year, leaving the currency highly sensitive to incoming economic data and geopolitics.

BNY strategists John Velis and David Tam preview the upcoming FOMC meeting under new Chair Kevin Warsh, expecting slightly hawkish changes to the statement and dot plot.

Japan Finance Minister (FM) Satsuki Katayama said during the European trading session on Tuesday that the government is focused on appropriately conducting economic and fiscal policies.

Australia RBA Interest Rate Decision meets forecasts (4.35%)

The AUD/JPY cross loses traction to around 113.20 during the Asian trading hours on Tuesday. The Japanese Yen (JPY) edges higher against the Australian Dollar (AUD) following the Bank of Japan (BoJ) interest rate decision.

USD/JPY depreciates after two days of gains, trading around 160.10 during the Asian hours on Tuesday. The pair remains subdued as the Japanese Yen (JPY) holds ground following the release of the interest rate decision by the Bank of Japan (BoJ).

Japan BoJ Interest Rate Decision in line with expectations (1%)

South Korea Money Supply Growth increased to 8.1% in April from previous 7.2%

The NZD/USD pair loses momentum to around 0.5810 during the Asian trading hours on Tuesday. The New Zealand Dollar (NZD) weakens against the US Dollar (USD) following the Chinese economic data. All eyes will be on the US Federal Reserve (Fed) interest rate decision later on Wednesday. 

China’s Retail Sales fell 0.6% year-over-year (YoY) in May vs. 0% expected and 0.2% in April, the latest data released by the National Bureau of Statistics (NBS) showed Tuesday.

China Fixed Asset Investment (YTD) (YoY) registered at -4.1%, below expectations (-2%) in May

China Industrial Production (YoY) came in at 4.5%, above expectations (4.3%) in May

China Retail Sales (YoY) came in at -0.6%, below expectations (0%) in May

China House Price Index remains unchanged at -3.5% in May

On Tuesday, the People’s Bank of China (PBOC) sets the USD/CNY central rate for the trading session ahead at 6.8108 compared to the previous day's fix of 6.8088 and 6.7605 Reuters estimate.

US President Donald Trump said that Iran agreed not to ever have a nuclear weapon, the Guardian reported on Tuesday.

Japan's Economy Minister, Minoru Kiuchi, said on Tuesday that he will participate in today's Bank of Japan (BoJ) meeting. Kiuchi added that he strongly hopes the central bank communicates and collaborates with govthe government sustainably and stably reach the 2% inflation target.

The Reserve Bank of Australia (RBA) is widely expected to leave the Official Cash Rate unchanged at 4.35% when it announces its monetary policy decision on Tuesday, marking a pause after three consecutive rate hikes delivered earlier this year.

South Korea Import Price Growth (YoY): 24.8% (May) vs 20.2%

South Korea Export Price Growth (YoY) rose from previous 40.8% to 46.9% in May

United States (US) President Donald Trump said on Monday that the Iran deal had been signed, adding that the Strait of Hormuz had fully reopened and that Oil prices were falling while stocks were rising. The President made the statement shortly after arriving in Evian, France, for a G7 meeting.

BNY’s Bob Savage emphasizes that, despite improved risk sentiment from geopolitical de-escalation, investors remain focused on central bank policy and global growth resilience.

United States NAHB Housing Market Index registered at 35, below expectations (36) in June

United States Industrial Production (MoM) came in at 0.1% below forecasts (0.3%) in May

United States Capacity Utilization meets forecasts (76.2%) in May

In an interview with CNBC on Monday, United States (US) Vice President JD Vance said that they expect the Strait of Hormuz to be "open toll-free in the long term," per Reuters.

Canada Wholesale Sales (MoM) above expectations (0.1%) in April: Actual (0.6%)

United States NY Empire State Manufacturing Index below expectations (14) in June: Actual (5.7)