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.

AUD/JPY trades around 110.55 on Wednesday at the time of writing, virtually unchanged on the day.

UOB’s Quek Ser Leang and Lee Sue Ann report USD/JPY has extended its rebound to around 155.08, with modest upward momentum suggesting scope for a test above 155.50, while 156.30 remains a distant cap.

The Eurozone industrial sector activity declines 0.1% in July, according to data published by Eurostat.

The GBP/USD pair attracts fresh sellers following an intraday uptick to the 1.3500 neighborhood and drops to the lower end of its daily range during the first half of the European session on Wednesday.

ING’s Francesco Pesole highlights that the Federal Reserve announcement could push EUR/USD towards the 1.150 target.

The Japanese Yen (JPY) turns flat against the US Dollar (USD) at around 155.00 in the European trading session on Wednesday after recovering its early losses.

The NZD/USD pair bounces off an over two-month low, around the 0.5735 area touched earlier this Wednesday, though it lacks any follow-through buying.

USD/CAD continues its winning streak for the sixth consecutive day, trading around 1.3930 during European hours on Wednesday. The technical analysis of the daily chart indicates that the price is positioned slightly below the top trendline of an ascending channel, suggesting an ongoing bullish bias.

Deutsche Bank’s Sanjay Raja notes that United Kingdom (UK) inflation rose in August, with headline Consumer Price Index (CPI) at 3.1% year-on-year, its highest since December last year. While Core CPI and food inflation remained subdued, energy and services prices showed worrying strength.

The Australian Dollar (AUD) trades slightly lower at around 0.7125 against the US Dollar (USD) during the European trading session on Wednesday.

Commerzbank economists note India’s August CPI rose to 4.8% year-on-year, above the RBI midpoint but still below the central bank’s full-year forecast. They see a more finely balanced policy outlook, with a likely hawkish hold at 5.25%.

The British Pound (GBP) ticks higher against the US Dollar (USD) on Wednesday, although the GBP/USD pair retreated to 1.3480 from session highs at the 1.3500 area, following the release of the UK Consumer Prices Index (CPI) data from August.

UOB’s Quek Ser Leang and Lee Sue Ann keep a cautious stance on EUR/USD after the pair closed almost unchanged near 1.1543.