Currencies Hold Steady Amid Trade Pacts & Central Bank Focus

The euro stabilized near its monthly low this Wednesday as investors navigated the ramifications of the recent U.S.-EU trade agreement. Meanwhile, the dollar saw fluctuations ahead of the much-anticipated Federal Reserve policy meeting. The Japanese yen strengthened after a major earthquake off Kamchatka Peninsula, triggering tsunami warnings across Japan's eastern coast.

Amid steady currency markets, investors remain cautious, readying themselves for pivotal economic updates and central bank meetings across Canada, Japan, and the United States. While U.S. and Chinese negotiators agreed to extend their tariff negotiation period, no significant resolutions were reached during the recent Stockholm talks.

With Trump's trade policy tactics in the spotlight, investor focus shifts to the impending Federal Reserve meeting. Market watchers are keenly interested in Fed Chair Jerome Powell's remarks, amid President Trump's ongoing demands for interest rate cuts. The BOJ's potential rate changes also catch investor attention as the yen responds to natural disaster news.