GBP/USD churned in place on Tuesday, hitting a brief patch of volatility but otherwise holding steady near four-year highs as the US Dollar (USD) struggles to find its footing.

The USD/JPY pair recovers some lost ground to near 153.35 during the early Asian session on Thursday. The US Dollar (USD) strengthens against the Japanese Yen (JPY) after US Treasury Secretary Scott Bessent affirms a strong USD policy.

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The Australian Dollar (AUD) trades slightly lower against the US Dollar (USD) on Wednesday, with AUD/USD stuck in a narrow intraday range as traders show a muted reaction to the Federal Reserve’s (Fed) monetary policy announcement.

The Japanese Yen (JPY) remains under pressure against the US Dollar (USD) on Wednesday, with USD/JPY consolidating gains after the Federal Reserve’s (Fed) monetary policy announcement. At the time of writing, the pair is trading around 153.92, up nearly 1.0% on the day.

GBP/USD stays below the 1.3800 figure after the Federal Reserve’s decided to keep interest rates on hold, on a 10-2 vote split as two Fed Governors opted for a rate cut of 25 basis points. The pair trades volatile within the 1.3740-1.3790 range, ahead of the Fed Chair Jerome Powell press conference.

EUR/USD fluctuated but remained relatively stable within Wednesday’s pre-existing price action range after the Federal Reserve (Fed) announced it would keep interest rates in the 3.5-3.75% range, emphasizing its data-dependent approach.

EUR/USD dives over 0.70% on Wednesday below the 1.2000 figure as the US Treasury Secretary Scott Bessent denied intervention rumors in the FX markets and reiterated the strong Dollar policy. Therefore, broad US Dollar weakness triggered by US President Trump, is fading ahead of the Fed’s decision.

The Euro (EUR) edges lower against the US Dollar (USD) on Wednesday as the Greenback attempts a modest rebound ahead of the Federal Reserve’s interest rate decision due at 19:00 GMT.

USD/JPY trades around 153.60 on Wednesday at the time of writing, up 0.80% on the day, as the US Dollar (USD) attempts to stabilize after hitting a four-year low earlier in the week.

The Canadian Dollar (CAD) holds firm against the US Dollar (USD) on Wednesday, as traders digest a largely uneventful Bank of Canada (BoC) interest decision.

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The GBP/USD retreats after posting four-year highs of 1.3868 on Tuesday, edges below the 1.3800 mark as traders await the monetary policy decision of the Federal Reserve. At the time of writing, the pair trades at 1.3798, down 0.32%.

The Australian Dollar (AUD) is trading sideways against the US Dollar (USD) on Wednesday, as the Greenback finds some footing ahead of the Federal Reserve’s interest rate decision due at 19:00 GMT.

The Australian Dollar has outperformed, driven by optimism over global growth and rising commodity prices.

The British Pound (GBP) is trading on the back foot against the Japanese Yen (JPY) on Wednesday, with GBP/JPY under modest pressure as demand for the Yen picks up amid fresh intervention speculation.

NZD/USD halts its bullish momentum and trades around 0.6030 on Wednesday at the time of writing, down 0.20% on the day.

The Yen holds gains despite the moderate US Dollar recovery on Wednesday. The USD/JPY remains capped below the 153.00 level, trading at 152.45 at the time of writing, with three-week lows at 152.16 at a short distance ahead of the US Federal Reserve’s (Fed) monetary policy decision.

Commerzbank's report, written by Michael Pfister, indicates that the Bank of Canada is unlikely to change interest rates in the near term. The Canadian economy is slowly recovering, and inflation pressures are rising.

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EUR/GBP trades without a clear direction on Wednesday, hovering around 0.8690 at the time of writing and virtually unchanged on the day. Trading conditions remain subdued, as a light economic calendar in both the United Kingdom (UK) and the Eurozone encourages investors to remain cautious.

The Swiss Franc is currently threatening to strengthen against the Euro, with potential implications for the SNB's policy. The loss of confidence in US policymaking has heightened fears of currency debasement, boosting the appeal of the CHF as a store of value.

The Bank of Canada (BoC) is widely expected to leave its benchmark rate unchanged at 2.25% at Wednesday’s meeting, extending the pause it signalled back in December.

The report from BNY outlines the rebalancing needs for the Japanese Yen (JPY) following a significant selloff in Japanese government bonds (JGBs). It indicates that while there is a strong need for JPY purchases, market sentiment may remain cautious until after the upcoming election.

The Euro shows moderate losses on Wednesday, retreating to 1.1985 at the time of writing, from over four-year highs at 1.2082 hit on Tuesday.

The EUR/USD pair showed bullish momentum on Tuesday, as short-dated EUR swap rates declined. The stronger euro poses a risk to the ECB's inflation targets, prompting concerns among policymakers.

The US Dollar regains lost ground heading into the Federal Reserve’s (Fed) monetary policy decision on Wednesday.

USD/CAD moves little after registering nearly 1% losses in the previous session, trading around 1.3570 during the European hours on Wednesday.

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