The imminent Federal Open Market Committee statement and Powell’s news conference kept a lid on forex volatility during the Asian morning. Net change across major FX rates is tiny. USD/CAD did drop back towards its late Tuesday America’s afternoon low. There is a Bank of Canada policy statement and Governor press conference due later Wednesday also.

News and data flow was light. The Bank of Japan published its January meeting ‘Summary of Opinions’ – the highlights were a discussion of slightly higher inflation but members noted CPI was unlikely to get to target any time soon and thus ultra-easy policy would remain in place.

US equity index futures rallied during Globex trade while regional equities here are mainly up just a little.

The reference rate for the onshore yuan hit nearly a four-year high for CNY against the USD, while the CNY TWI hit its highest in around six and a half years.

Markets were closed in Australia today for a national holiday. As mentioned above, today is FOMC (and BoC) day. Previews linked in here:

  • Federal Reserve and Bank of Canada meetings Wednesday 26 January 2022 - key times
  • EUR little changed:

    wrap chart 26 January 2022