This week, the Federal Reserve Open Market Committee may be announcing a rate cut, following a two-day meeting. This led the EUR/USD pair to be traded over the 1.1050 handle, despite staying below 12-week long falling trend-line on the FOMC-day. Investors will be waiting for the Fed’s final decision after the monetary policy meeting. Dovish bias by the European Central Bank and any comments from the Federal Open Market Committee (FOMC) could potentially hinder the recovery of the EUR/USD pair. 

The Fed’s decision will also be influencing the Cable’s value, which is currently being traded at 1.2489. The GBP/USD decline came about as markets wait for the publication of UK inflation figures. The pair continues to struggle to clear 100-day moving average resistance. On Tuesday, the Cable made a bullish outside bar candlestick pattern. 

The Fed’s expected rate cut is estimated to be of 25 basis points. 

In addition, the Australian dollar against the U.S. dollar did not take advantage of the overnight rebound and faced selling pressure on Wednesday. Despite placing within the 0.6864/70 region, the pair did not have a strong follow-through. The Melbourne Institute's Leading Index’s report hinted that the economy is headed towards a disappointing direction.