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Oil prices fell slightly after Russia agreed to halt attacks on Ukrainian energy infrastructure, potentially easing sanctions and increasing oil supply. However, declines were limited by ongoing Middle Eastern turmoil, with U.S. aggression in Yemen, Israeli air strikes in Gaza, and mixed U.S. crude stock data.
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The yen steadied and the dollar struggled on Wednesday ahead of key rate decisions from the Bank of Japan and the Federal Reserve. Traders were cautious ahead of these central bank meetings. The euro scaled a five-month high, driven by optimism over Germany’s fiscal plans. Sterling and the Australian dollar showed slight movements, while the Fed’s policy decision was awaited.
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Gold hovers just below its record high, driven by safe-haven demand due to geopolitical tensions and tariff uncertainties. Investors are keenly awaiting the Federal Reserve’s policy decision and remarks from Fed Chair Jerome Powell, which could influence future monetary policy.
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U.S. stocks fell on Tuesday, driven by concerns ranging from President Trump’s trade wars to Big Tech outlooks and geopolitical tensions. Gold surged to over $3,000 an ounce while major Wall Street indices dropped between 0.6% and 1.7%, reflecting investors’ fragility and economic uncertainties ahead of the Federal Reserve’s upcoming policy decisions.
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