The EUR/USD trades sideways on Wednesday as traders wait for the monetary policy decision by the Federal Reserve (Fed) and Chair Jerome Powell's press conference. At the time of writing, the pair trade sat 1.1848, down 0.15%.

The Euro (EUR) is little changed against the US Dollar (USD) on Wednesday, with EUR/USD pausing a four-day winning streak after hitting its highest level since September 2021 on Tuesday.

Russia Producer Price Index (YoY) climbed from previous -0.3% to 0.4% in August

Russia Producer Price Index (MoM) increased to 1.1% in August from previous 0.9%

The British Pound advances modestly 0.15% on Wednesday as traders await the outcome of the Federal Reserve’s (Fed) monetary policy decision. Nevertheless, Sterling climbs as inflation data in the UK, justifies the Bank of England’s (BoE) stance of holding rates on Thursday.

The Canadian Dollar (CAD) trades on the back foot against the US Dollar (USD) on Wednesday after the Bank of Canada (BoC) cut its benchmark rate by 25-basis-points (bps) to 2.50%, as expected.

The Euro (EUR) trades under pressure against the Swiss Franc (CHF) on Wednesday, with EUR/CHF extending losses for the second straight session as the common currency struggles to gain traction following Eurozone inflation data.

The USD/CAD pair ticks up to near 1.3760 during the late European session on Wednesday. The Loonie pair gains marginally ahead of monetary policy outcomes by the Bank of Canada (BoC) and the Federal Reserve (Fed) during New York trading hours.

The Euro (EUR) is soft, down a modest 0.3% against as it trades somewhat defensively with a slight pullback from Tuesday’s fresh multi-year high, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

The Canadian Dollar (CAD) is soft, down a marginal 0.1% vs. the USD into Wednesday’s dual BoC/Fed rate decisions, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

The Euro has given away some of Tuesday’s gains on Wednesday.

Strong downward momentum may lead to further US Dollar (USD) weakness, possibly toward 145.85. In the longer run, sharp increase in short-term downward momentum suggests USD could weaken to 145.85, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

The USD/JPY pair falls further to near 146.20 in the European trading session on Wednesday. The pair faces selling pressure as the US Dollar (USD) trades cautiously ahead of the Federal Reserve’s (Fed) monetary policy announcement at 18:00 GMT.

Pound Sterling (GBP) showed little reaction to the UK’s August CPI release, which broadly matched expectations, though persistently elevated core and services inflation highlight slow disinflation and reinforce stagflation risks, BBH FX analysts report.

New Zealand Dollar (NZD) could test 0.6010 but it is unlikely to be able to break clearly above this level. In the longer run, there is a chance for NZD to rise to 0.6010; the likelihood of it reaching 0.6040 is not high for now, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

The Australian Dollar is trading lower from year-to-date highs at 0.6690 on Wednesday, yet with downside attempts limited above previous highs, at the 0.6665-0.6670 area, as investors await the outcome of the Fed’s meeting, due later today.The US Dollar Index, which measures the value of the Dollar

There is a chance for Australian Dollar (AUD) to edge above 0.6700; a sustained rise above this level appears unlikely.

While overbought, the advance in Pound Sterling (GBP) has scope to extend to 1.3700. In the longer run, there is room for further GBP gains toward 1.3700; the odds of an extended rise to 1.3765 are currently lower, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Germany 30-y Bond Auction down to 3.25% from previous 3.28%

Strong momentum continues to suggest a higher Euro (EUR); it remains to be seen if it can break above 1.1915. In the longer run, the risk is for EUR to continue to rise; the level to watch is 1.1955, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Japanese Yen (JPY) has strengthened following news that Minister Koizumi has been confirmed as a candidate in the LDP leadership race, OCBC's FX analysts Frances Cheung and Christopher Wong note.

EUR/USD has broken higher, reinforcing bullish momentum with MACD firmly positive and upside projections pointing to 1.1925 and 1.2000, while the 50-DMA offers a strong safety net on pullbacks, Société Générale's FX analysts note.

Markets are fully pricing in a 25bp rate cut by the Bank of Canada today, ING's FX analyst Francesco Pesole notes.

Eurozone Harmonized Index of Consumer Prices (YoY) below forecasts (2.1%) in August: Actual (2%)

Eurozone Core Harmonized Index of Consumer Prices (MoM) remains at 0.3% in August

Eurozone Core Harmonized Index of Consumer Prices (YoY) in line with expectations (2.3%) in August

Eurozone Harmonized Index of Consumer Prices (MoM) came in at 0.1% below forecasts (0.2%) in August

Yesterday's Canadian inflation figures were broadly in line with expectations, Commerzbank's FX analyst Michael Pfister notes.

The USD/IDR pair climbs to near 16.40 during the European trading session on Wednesday. The pair attracts significant bids as the Bank Indonesia (BI) has surprisingly cut its benchmark 7-day reverse repurchase rate by 25 basis points to 4.75%.

EUR/USD has broken to the topside of a 10-week trading range, and it looks hard to resist the move, ING's FX analyst Chris Turner notes.