BOE: Watch out for hints on negative rates – Citibank

EUR/USD struggles to gain traction and trades below 1.1700 on Wednesday. The pair faces headwinds from softer Eurozone inflation data, which weigh on the Euro. Meanwhile, the US Dollar remains quiet ahead of key macroeconomic data releases, limiting the pair's volatility.

GBP/USD loses ground to gyrate around 1.3500 on Wednesday after registering modest gains in the previous session. The pair treads water as the US Dollar struggles ahead of the US ADP Employment Change, JOLTS Job Openings and ISM Services Purchasing Managers’ Index due later in the day.

Gold stays under bearish pressure on Wednesday and trades well below $4,500 after posting strong gains to start the week. Market participants await employment and ISM Services PMI data from the US, which could influence the market pricing of the Fed's policy outlook.

The Automatic Data Processing Research Institute will release its monthly Employment Change Report for December on Wednesday. The ADP report is expected to show that the United States economy created 45,000 jobs in the last month of 2025, to offset the 32.000 net employment loss seen in November.

Events in Venezuela are top of mind for market participants, and while developments are associated with an elevated degree of uncertainty, we are not making any changes to our markets or economic forecasts as a result of the deposition of Nicolás Maduro. 

Aave (AAVE) price hovers around $172 on Wednesday, nearing the upper trendline of the falling parallel channel pattern. A break above this technical pattern favors the bulls.