Markets remained cautious on Wednesday as safe-haven flows supported the US dollar ahead of the Federal Reserve’s rate decision.
EUR/USD slipped near 1.15, while the yen steadied and gold hovered close to $3,390 amid ongoing Israel-Iran conflict. Sterling stayed flat before key UK and US policy announcements, and silver edged higher with investors awaiting Powell’s guidance.
| Time | Cur. | Event | Forecast | Previous |
| 06:00 | GBP | CPI (YoY) (May) | 3.3% | 3.5% |
| 09:00 | EUR | CPI (YoY) (May) | 1.9% | 1.9% |
| 12:30 | USD | Initial Jobless Claims | 246K | 248K |
| 14:30 | USD | Crude Oil Inventories | -3.644M | |
| 18:00 | USD | Fed Interest Rate Decision | 4.50% | 4.50% |
EUR/USD traded near 1.15 on Wednesday, under pressure from safe-haven demand for the U.S. dollar as Middle East tensions escalated. Fears of broader conflict involving the U.S. kept the dollar firm. Markets await the Federal Reserve’s policy decision, with rates expected to stay unchanged, though guidance may shape future expectations. The euro remained weak, burdened by Europe’s energy import exposure amid rising oil prices.
Resistance is located at 1.1580, while support is seen at 1.1460.
| R1: 1.1580 | S1: 1.1460 |
| R2: 1.1660 | S2: 1.1390 |
| R3: 1.1700 | S3: 1.1350 |
The yen held near 145.1 per dollar on Wednesday following three consecutive sessions of losses, weighed down by soft economic data and trade uncertainty. Japan’s exports declined in May for the first time in eight months, alongside drops in machinery orders and manufacturing sentiment. The Bank of Japan left rates unchanged and maintained a cautious tone, though Governor Ueda signaled future hikes remain possible. Trade talks between Prime Minister Ishiba and President Trump at the G7 summit showed no progress on tariffs.
Resistance is at 145.30, while support stands near 142.50.
| R1: 145.30 | S1: 142.50 |
| R2: 146.10 | S2: 142.10 |
| R3: 148.15 | S3: 141.50 |
Gold rebounded from early losses on Wednesday, returning to around $3,390 as the Iran-Israel conflict entered its sixth day. Israel confirmed strikes near Tehran and reported missile launches from Iran, while President Trump’s national security meeting fueled speculation about potential U.S. involvement. Investors also focused on the Federal Reserve meeting, with no rate change expected but attention on guidance amid trade tensions and global uncertainty.
Resistance is seen at $3,430, while support holds at $3,350.
| R1: 3430 | S1: 3350 |
| R2: 3500 | S2: 3310 |
| R3: 3600 | S3: 3290 |
GBP/USD trades near 1.3435 on Wednesday, steadying after a 1.2% drop Tuesday amid rising geopolitical tensions and safe-haven dollar demand.
The pound stays under pressure ahead of today’s UK inflation report and tomorrow’s BoE decision, where rates are expected to remain at 4.25%. Any inflation surprise could shift market expectations.
Ongoing Middle East conflict continues to support the dollar, while traders also await the Fed’s policy announcement later today, which could influence GBP/USD further.
Resistance is at 1.3600, with support around 1.3425.
| R1: 1.3600 | S1: 1.3425 |
| R2: 1.3750 | S2: 1.3165 |
| R3: 1.3850 | S3: 1.2890 |
XAG/USD rose 0.3% to $37.23 on Wednesday, though gains were capped by a stronger U.S. dollar as investors turned to safe assets amid escalating geopolitical tensions and caution ahead of the Federal Reserve’s decision. Silver’s safe-haven appeal remained, but the firmer dollar made it less attractive for non-dollar buyers. Markets are now watching Fed Chair Jerome Powell’s remarks for clues on future policy and near-term direction for silver.
Resistance is set at 37.50, while support stands at 35.40.
| R1: 37.50 | S1: 35.40 |
| R2: 39.00 | S2: 34.85 |
| R3: 41.00 | S3: 33.80 |
The euro held near 1.1630 after President Trump claimed to dismiss Fed Governor Lisa Cook, a move she rejected.
Detail
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