EUR/USD: Soft and prone to renewed 1.05 test – Scotiabank

EUR/USD rapidly leaves behind four consecutive daily pullbacks, challenging the 1.1700 hurdle in response to the severe sell-off in the Greenback as investors continued to evaluate the Fed’s rate cut and the neutral message from Chief Powell. Next on tap on the docket will be the weekly US labour market report on Thursday.

GBP/USD gains upward traction as the USD eased following the Federal Reserve decision to trim the benchmark interest rate by 25 bps. FOMC divided, Summary of Economic Projections shows no relevant changes.

Gold prices are up after the US central bank's monetary policy announcement, trading around $4,230 as Asian traders reach their desks. A better market mood limits demand for the safe-haven metal, but broad US Dollar weakness skews the risk to the upside. 

Traditional investors are playing a key role in Ethereum's (ETH) recent recovery after weeks on the sidelines. Ethereum exchange-traded funds (ETFs) drew in $177.6 million on Tuesday, marking a second consecutive day of positive performance and their highest inflow since October 28, according to SoSoValue data.

The Federal Open Market Committee’s (FOMC) latest dot plot, released on Wednesday, indicates that interest rates will average 3.4% by the end of 2026, in line with the September projection.

Hyperliquid is trading above $28.00 at the time of writing on Wednesday, after rebounding from support at $27.50. The broader cryptocurrency market is characterised by widespread intraday losses ahead of the Fed monetary policy decision.