The People’s Bank of China (PBOC) sets the USD/CNY central rate for the trading session ahead at 6.7892 compared to the previous day's fix of 6.7899.

The GBP/USD pair struggles to capitalize on the previous day's strong move up to the weekly high and drifts lower during the Asian session on Thursday.

The EUR/USD pair trades with mild losses around 1.1465 during the early Asian session on Thursday. The US Dollar (USD) edges higher against the Euro (EUR) on a hawkish Federal Reserve (Fed) rate hold.

The GBP/JPY advances by over 0.30%, rising above 218.00, as risk appetite improves amid overall US Dollar weakness following the Federal Reserve's monetary policy decision. The pair trades near 218.50 after hitting a low of the day (LOD) of 217.16.

The Federal Reserve (Fed) held its target range at 3.50% to 3.75% for a fifth consecutive meeting at 18:00 GMT, and the pair did what a market short the Yen against a 1.00% policy rate does when a hike it partly paid for fails to arrive.

NZD/USD trades higher near the 0.5790 area on Wednesday, reversing its earlier decline as the US Dollar (USD) weakens sharply following the Federal Reserve’s (Fed) monetary policy announcement.

USD/JPY trades near the 163.60 area on Wednesday, recovering from its immediate post-announcement decline as investors assess a generally hawkish Federal Reserve (Fed) monetary policy decision.

The Aussie Dollar trimmed some of its earlier losses after the Federal Reserve kept rates steady, by a 9 to 3 vote, with three dissenters who supported a 25-basis-point rate hike. The AUD/USD trades at around 0.6950, down 0.32%. 

The shared currency surged after the Federal Reserve kept rates steady, by a 9 to 3 vote, with three dissenters who supported a 25-basis-point rate hike. The EUR/USD trades volatily above 1.1420, up 0.28%. 

The hold arrived at 18:00 GMT on a 9-3 vote, the target range unchanged at 3.50% to 3.75% with three voting members preferring an immediate quarter-point increase.

The Mexican Peso loses ground against the US Dollar on Wednesday as risk appetite turns sour amid the escalation of the Gulf War, while traders await the Federal Reserve’s monetary policy decision. The USD/MXN trades at 17.51, up 0.47%.

The Bank of Canada published the deliberations behind its July 15 hold this morning, roughly half an hour before the Federal Reserve announces whether it does the same thing.

AUD/JPY trades around 113.60 on Wednesday at the time of writing, down 0.61% on the day, after weaker-than-expected Australian inflation data triggered broad selling pressure on the Australian Dollar (AUD).

USD/CHF edges higher on Wednesday, hovering near its highest level in more than a year as hawkish Federal Reserve (Fed) expectations contrast with a steady Swiss National Bank (SNB) outlook, weighing on the Swiss Franc (CHF).

Scotiabank strategists Shaun Osborne and Eric Theoret highlight that GBP/USD is flat around 1.33, supported by stronger United Kingdom (UK) lending data and stabilizing Bank of England (BoE) expectations. They stress that UK fiscal narratives remain important for sentiment toward government debt.

Scotiabank strategists Shaun Osborne and Eric Theoret note that EUR/USD is consolidating within a very tight range in the mid-to-upper 1.13s.

The Pound Sterling holds firm on Wednesday as the US-Iran conflict escalates, with US President Donald Trump warning of further attacks on Iran, in retaliation for Tehran's strikes on US forces. The GBP/USD trades below 1.3300, barely unchanged.

USD/JPY trades around 163.80 on Wednesday at the time of writing, virtually unchanged on the day, as investors remain cautious ahead of the Federal Reserve's (Fed) monetary policy decision, which is due later in the day.

Scotiabank strategists Shaun Osborne and Eric Theoret describe USD/CAD as broadly stable around 1.41, with Canadian Dollar (CAD) performance driven mainly by front‑end rate differentials despite support from stronger Oil prices.

AUD/USD trades 0.4% lower near the 0.6945 area on Wednesday, extending its recent decline as the Australian Dollar (AUD) weakens following softer-than-expected domestic inflation data.

EUR/USD struggles below 1.1400 on Wednesday as traders brace for the Federal Reserve’s (Fed) interest-rate decision at 18:00 GMT, while the war in the Middle East fuels volatility across financial markets. At the time of writing, the pair trades around 1.1393, little changed on the day.

The Canadian Dollar (CAD) modestly outperforms the US Dollar (USD) on Wednesday, drawing support from a rebound in Oil prices as the war in the Middle East intensifies again following a brief calm. At the time of writing, USD/CAD trades around 1.4093, trapped within a week-old range.

BNY’s Geoff Yu notes Japan’s Government Pension Investment Fund (GPIF) has hired active domestic bond managers for the first time in five years to improve expertise and diversification amid volatile JGB markets. The fund’s domestic bond portfolio has suffered losses despite strong overall returns.

GBP/JPY extends its subdued price action on Wednesday, forming a series of small-bodied candlesticks after briefly climbing above 219.00 earlier this month, its highest level since December 2007. At the time of writing, the cross trades around 217.50.

The British Pound (GBP) has given away previous gains against the US Dollar (USD) on Wednesday and remains practically flat in the daily chart, trading below 1.3300, on track to complete a nearly 1.20% decline over the last two weeks.

Rabobank's Senior FX Strategist Jane Foley discusses how the Federal Reserve (Fed) and Bank of Japan (BoJ) decisions could shape USD/JPY, noting that Fed Chair Warsh’s stance on forward guidance adds uncertainty.

Societe Generale analyst highlight that AUD/USD is offered below 0.6950 after softer June Consumer Price Index (CPI), with markets scaling back expectations for an RBA hike.

The Euro (EUR) holds marginal gains against the US Dollar on Wednesday after finding some support in the mid-range of the 1.1300s earlier this week but remains unable to find acceptance above 1.1400.

The Euro (EUR) is nursing moderate losses against the British Pound (GBP) on Wednesday, as bulls failed to find acceptance above the 0.8575 resistance area on Tuesday.

ING’s Francesco Pesole notes that EUR/USD may have bottomed last week if markets maintain a constructive view on further geopolitical de-escalation. He argues a sustained move above 1.15 still requires dovish Federal Reserve (Fed) repricing and stabilised risk sentiment.