Italy Consumer Price Index (MoM) came in at -0.1% below forecasts (0%) in November

The EUR/USD pair trades flat around 1.1625 during the early European session on Wednesday. Markets turn cautious ahead of the US Federal Reserve interest rate decision later on Wednesday, in which a 25 basis points rate cut is almost fully priced in.

The GBP/USD pair trades on a firmer note around 1.3305 during the early European session. The Greenback edges lower against the Pound Sterling as the US Federal Reserve is widely expected to announce another interest rate cut on Wednesday. The UK monthly Gross Domestic Product (GDP) report will be published later on Friday. 

Gold edges higher during the Asian session and touches a fresh weekly top on Wednesday, though it lacks follow-through buying. The growing acceptance that the US Federal Reserve will lower borrowing costs at the end of a two-day policy meeting later today fails to assist the US Dollar in capitalizing on its recent recovery from the lowest level since late October. 

Dogecoin holds steady on Wednesday after a nearly 4% rise on Tuesday. Derivatives data indicate a surge in bullish bets and retail interest as the broader cryptocurrency market recovers on hopes that the US Federal Reserve will reduce interest rates by 25 basis points.

The global and European economies have been resilient in recent years even accounting for the modest global slowdown of 2025. But risks for the recovery are rising, underscoring a negative medium-run global macro and credit outlook.

Bitcoin is trading above $90,000 at the time of writing on Tuesday amid sticky risk-off sentiment in the broader crypto market. Altcoins, including Ethereum and Ripple, are paring losses, holding above key support levels.