The Fed raised rates by a quarter point to 3.75-4.00% on Wednesday, the first hike since 2023, and the vote was 12-0. The middle of the new range is 3.875%, which puts US rates above the UK's 3.75% for the first time this year.

The European Central Bank (ECB) raised its deposit rate to 2.50% on September 10, and the Euro has fallen every session since. The Fed raised its own rate to 3.75-4.00% on Wednesday, by the same quarter point, and the day's drop was the biggest of the run.

Brazil Interest Rate Decision meets forecasts (13.75%)

The Bank of Japan meets on Friday, and the market has a quarter-point hike to 1.25% priced at 100%. The Yen has been falling anyway. USD/JPY is up three sessions in a row, Wednesday's gain was the biggest of the three, and the pair is trading just under 156.50 after the Fed's hike to 3.75-4.00%.

New Zealand reports second-quarter growth later on Wednesday, or early on Thursday depending on where you are relative to the international date line, and the forecast is 0.1% for the quarter, down from 0.8% in the first three months of the year.

NZD/USD has dropped in six straight sessions. The run started near 0.5900 on September 8, went through both long-run averages near 0.5850 early in the run, and the last three sessions have been the biggest of the lot.

Australia's central bank pays more than the Federal Reserve (Fed) does. The cash rate is 4.35%, the Fed's new range is 3.75-4.00% after Wednesday's quarter-point hike, and most of the big Australian banks expect the RBA to raise again before the end of the year, and none of that has helped.

The Fed has raised its rate to 3.75-4.00%, its first increase since 2023 and its first move since the cut in December 2025. The Bank of Canada has not moved at all.

The USD/JPY pair trades at fresh weekly highs in the 155.50 price zone after the United States (US) Federal Reserve (Fed) delivered the expected 25 basis point (bps) interest rate hike. The US Dollar (USD) resumed its weekly advance with the headlines, following a pause ahead of the announcement.

AUD/USD extends losses on Wednesday after the Federal Reserve (Fed) raises interest rates and releases a hawkish set of policy projections. The pair slides nearly 20 pips in the immediate reaction and trades around 0.7113 at the time of writing.

The Fed has raised its rate to 3.75-4.00%, its first increase since 2023 and its first move since the cut in December 2025. The UK Bank Rate, the Bank of England's own rate, has been 3.75% since December 2025.

The Fed has raised its rate to 3.75-4.00%, its first increase since 2023 and its first move of any kind since the cut in December 2025. Six days ago the European Central Bank (ECB) raised its deposit rate, the return banks earn on money parked with it, by the same quarter-point to 2.50%.

NZD/USD trades around 0.5755 at the time of writing on Wednesday, virtually unchanged on the day after rebounding from an over two-month low at 0.5737.

The Pound trades just above 1.3450, down 23 pips, after a morning that ran in two directions. It climbed into the August inflation release at 06:00 GMT, spiked on it, then spent six hours handing the move back and another 30 pips with it.

Scotiabank strategists Shaun Osborne and Eric Theoret note the Euro (EUR) is consolidating in a tight range around the mid-1.15s as markets await the Federal Open Market Committee (FOMC).

Brown Brothers Harriman’s (BBH) Elias Haddad notes GBP/USD is trading heavy near its 200-day moving average as United Kingdom (UK) gilts stabilize. August Consumer Price Index (CPI) slightly exceeded the Bank of England's (BoE) projections, but he still expects the BoE to hold rates at 3.75%.

AUD/USD trades in a narrow range on Wednesday as investors hold back from taking strong positions ahead of the Federal Reserve’s (Fed) monetary policy announcement. At the time of writing, AUD/USD trades around 0.7134, little changed on the day.

Scotiabank strategists Shaun Osborne and Eric Theoret report USD/CAD is steady near 1.39 as markets await the Federal Reserve (Fed) and the Bank of Canada’s (BoC) summary of deliberations. They note the BoC is likely to sound more hawkish after firmer inflation data and still-accommodative policy.

ING’s Bert Colijn notes that Eurozone industrial production slipped by 0.1% in both June and July, leaving output broadly unchanged from a year earlier. He highlights resilience in capital goods and energy, but continued weakness in consumer-focused sectors, especially non-durable goods.

EUR/USD consolidates losses on Wednesday as traders avoid taking strong directional positions ahead of the Federal Reserve’s (Fed) monetary policy announcement.

Rabobank’s Senior Macro Strategist Bas van Geffen notes that EUR money markets now discount more than four additional European Central Bank (ECB) rate hikes beyond the two already delivered, as investors push expectations ahead of policymakers.

EUR/GBP extends its recovery on Wednesday after bouncing from the 50-day Simple Moving Average (SMA) at 0.8555 on Monday, its lowest level in two weeks.

BNY’s Geoff Yu argues that while Eurozone growth and inflation risks are real, being long the Euro (EUR) is not the best way to express this view.

The Canadian Dollar (CAD) trades lower against a firm US Dollar (USD) on Wednesday, with the market positioned for a quarter rate hike by the Federal Reserve (Fed), the first one in three years, later in the day.

AUD/USD trades around 0.7130 on Wednesday at the time of writing, virtually unchanged on the day, as investors remain cautious ahead of the Federal Reserve (Fed) monetary policy decision.

ING notes that New Zealand’s Q2 GDP slowdown could magnify market impact given infrequent data, but the Reserve Bank of New Zealand remains focused on inflation and jobs.

The Euro (EUR) trades subduedly at around 1.1535 against the US Dollar (USD) during the European trading session on Wednesday. The major currency pair trades cautiously ahead of the Federal Reserve’s (Fed) monetary policy announcement at 18:00 GMT.

UOB’s Quek Ser Leang and Lee Sue Ann note AUD/USD has pulled back after Monday’s sharper-than-expected drop, with intraday price action now seen confined to a 0.7100–0.7140 band.

Danske Research Team notes that the US Dollar (USD) remained firm, pushing EUR/USD modestly lower as risk sentiment weakened. In the euro area, Germany’s September ZEW survey showed a sharp improvement in current conditions, while expectations disappointed.

Societe Generale highlights GBP/USD trading just above its 200-day moving average, with the August trough around 1.3440–1.3420 acting as a key support zone.