The EUR/USD pair trades flat around 1.1625 during the early European session on Wednesday. Markets turn cautious ahead of the US Federal Reserve (Fed) interest rate decision later on Wednesday, in which a 25 basis points (bps) rate cut is almost fully priced in.
Pound Sterling (GBP) is likely to trade in a range between 1.3290 and 1.3350. In the longer run, a break below 1.3265 would indicate that the advance in GBP from late last month has come to an end, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Bank of Japan (BoJ) Governor Kazuo Ueda said on Tuesday that certainty of central bank's outlook materialising is increasing gradually. Ueda added that he will adjust degree of monetary easing if economic and prices trends move in line with forecasts.