USD Firms as Markets Await FOMC Decision; NZD/USD Lags Peers

The US dollar traded mostly firmer across the board on Wednesday as markets adopted a cautious stance ahead of the Federal Reserve's rate decision. NZD/USD underperformed among major pairs, while EUR/USD faced mixed signals as Euro area inflation accelerated in May with services inflation remaining stubbornly elevated. ECB policymaker Simkus signaled at least one more rate hike ahead, providing some support for the euro. UK inflation held flat in May though core prices edged slightly higher, keeping GBP in focus. WTI crude rose 0.6% to $76.50, while the IEA warned of a significant supply overhang in the oil market next year. US 10-year Treasury yields climbed 1.3 basis points, reflecting the market's hawkish positioning into the Fed. European equities held marginal gains and S&P 500 futures edged up 0.1%, underscoring the prevailing wait-and-see mood. Traders should watch for the Fed's updated dot plot and any shifts in forward guidance that could trigger sharp moves across dollar pairs.