Russia Unemployment Rate unchanged at 2.2% in March

As widely expected, the Bank of Canada (BoC) delivered an expected hold at 2.25%, but the details suggested a more nuanced backdrop.

The Australian Dollar (AUD) edges lower against the US Dollar (USD) on Wednesday, weighed by softer-than-expected Australian inflation data, while fading hopes that the US-Iran war will end anytime soon support the Greenback.

Scotiabank strategists Shaun Osborne and Eric Theoret observe that the US Dollar (USD) is firm but rangebound as higher Oil and mixed US-Iran headlines drive risk sentiment.

EUR/USD drops by some 0.17% during the North American session as a possible resolution of the US-Iran conflict seems far from ending, while Durable Goods Orders data in the US suggest that the economy remains solid.

ING’s Deepali Bhargava and Francesco Pesole argue that rising energy-driven inflation and firm underlying price pressures strengthen the case for a 25bp Reserve Bank of Australia (RBA) hike on 5 May.

West Texas Intermediate (WTI) Oil is currently trading near $102 per barrel, its highest level in roughly three weeks.

Deutsche Bank’s Mallika Sachdeva argues that shifting geopolitics are reshaping central bank reserve allocation towards Gold and away from the US Dollar (USD).

United States EIA Crude Oil Stocks Change: -6.233M (April 24) vs previous 1.925M

MUFG’s Derek Halpenny notes the US Dollar is broadly steady as resilient US equities and strong earnings temper risk aversion despite escalating Middle East tensions and a prolonged closure of the Strait of Hormuz.

Donald Trump's nominee to become the Chair of the Federal Reserve, Kevin Warsh has been confirmed by the US Senate Banking Committee.

ING analysts Warren Patterson and Ewa Manthey say the United Arab Emirates' (UAE) departure from OPEC (Organization of Petroleum Exporting Countries) from 1 May is a significant blow to the group but has limited short-term impact on the Oil market due to existing Persian Gulf disruptions.

The GBP/USD pair fell toward the 1.3480 price region on Wednesday as the US Dollar (USD) continued to gain strength ahead of the last Federal Reserve (Fed) interest rate decision led by Chair Jerome Powell.

Deutsche Bank’s Shreyas Gopal and Sanjay Raja note that EUR/GBP continues to trade above levels implied by Bank of England (BoE)-European Central Bank (ECB) rate differentials, leaving a measurable risk premium in the Pound (GBP).

Canada BoC Interest Rate Decision meets expectations (2.25%)

Citing a White House official, Reuters reported on Wednesday that United States (US) President Donald Trump met with top officials from Chevron and other major energy companies to discuss global oil markets amid the Middle East conflict.

BNY’s Bob Savage notes the US Dollar (USD) is entering the Federal Open Market Committee (FOMC) meeting with strengthening demand, including a first five-day net purchase streak in three months and rising use of USD cash and short-term instruments.

Rabobank's Senior Macro Strategist Bas van Geffen notes Brent futures have surged above $112 as the closure of the Strait of Hormuz persists and negotiations between Iran and the US remain deadlocked.

Ripple (XRP) sustains modest gains, trading around $1.39 at the time of writing on Wednesday. The remittance token is aligned with the broader crypto market recovery, which has seen Bitcoin (BTC) rise from its weekly low around $75,650 on Tuesday to highs above $77,000 as of writing.

Silver (XAG/USD) declines and trades around $72.30 on Wednesday at the time of writing, down 1.02% on the day, after failing to establish a sustained move above the $74.00 area.

USD/CAD trades with a mild downside bias on Wednesday ahead of the Bank of Canada’s (BoC) interest rate decision due at 13:45 GMT.

Philip Wee of DBS Bank discusses the Federal Reserve’s expected decision to keep the Fed Funds Rate unchanged while Jerome Powell holds his final press conference as Chair.

Derek Halpenny at MUFG highlights that the Canadian Dollar (CAD) has held up well versus the US Dollar since the Middle East conflict began, with markets expecting the Bank of Canada (BoC) to keep rates unchanged but adopt a more hawkish tone.

TD Securities’ Global Strategy Team expects the Federal Reserve to keep the policy rate at 3.50–3.75% at the April FOMC meeting, describing the Committee as patient given balanced labor markets and oil-driven headline inflation.

Durable Goods Orders in the US increased $2.6 billion, or 0.8%, on a monthly basis in March to $318.9 billion, the US Census Bureau reported on Wednesday. This print followed the 1.2% contraction recorded in February and surpassed the market expectation for an increase of 0.5%.

United States Housing Starts Change dipped from previous 7.2% to -3% in February

United States Building Permits Change: 11% (February) vs -5.4%