USD/CHF declines around 0.7790 on Wednesday at the time of writing, down 0.50% on the day, as the US Dollar (USD) remains under pressure in a more risk-positive market environment.

Derek Halpenny at MUFG highlights that United Kingdom (UK) Gilt yields have jumped sharply, echoing past episodes of political and fiscal stress, with long-end Gilts still elevated versus pre‑2011 levels.

USD/CAD struggles for direction on Wednesday as renewed optimism surrounding a potential US-Iran peace deal pressures the US Dollar (USD), while falling Oil prices weigh on the commodity-linked Canadian Dollar (CAD).

Commerzbank economists Bernd Weidensteiner and Christoph Balz assess how incoming Fed Chair Kevin Warsh could reshape U.S. monetary policy and its implications for the Dollar.

Brown Brothers Harriman’s (BBH) Elias Haddad reports NZD/USD has rebounded toward 0.6000 on broad US Dollar (USD) weakness, nearly erasing war-related losses. New Zealand’s Q1 labour data were mixed, with softer employment but firm wage growth.

In April, US private-sector hiring experienced a decent increase, with employers adding 109K jobs, surpassing the 99K that economists had anticipated, as reported by Automatic Data Processing, Inc. (ADP).

The New Zealand Dollar (NZD) appreciates more than 1.5% against the US Dollar (USD) on Wednesday, as rumours that Washington and Iran are close to a peace deal have boosted risk appetite.

United States ADP Employment Change registered at 109K above expectations (99K) in April

ING’s Chris Turner calls Brazil one of his preferred emerging markets, citing strong terms of trade, buoyant equities and expectations of 100bp in rate cuts.

"Assuming Iran agrees to give what has been agreed to, which is, perhaps, a big assumption, the already legendary Epic Fury will be at an end, and the highly effective blockade will allow the Hormuz Strait to be open to all, including Iran," United States (US) President Donald Trump said in a post p

GBP/USD advances on Wednesday and trades around 1.3630 at the time of writing, up 0.65% on the day, benefiting from the broad weakness of the US Dollar (USD).

BNY’s Bob Savage highlights a sharp Japanese Yen (JPY) rally, with USD/JPY dropping as low as 155.04 before partially reversing, in a move widely seen as fresh official intervention. Authorities are viewed as defending the 160 level to curb speculative shorts.

Gold (XAU/USD) rallies on Wednesday as the US Dollar (USD) and Oil prices tumble on hopes that the United States and Iran could reach a deal to end the war in the Middle East.

Silver (XAG/USD) price rallies midweek and gains more than 6% on the day, trading near $77.50.

The Euro (EUR) rallied nearly 0.8% against the US Dollar (USD) on Wednesday, to test the top of the last few weeks' trading range, right below 1.1800, at the time of writing.

OCBC strategists Sim Moh Siong and Christopher Wong expect a mixed performance across Asian FX as a fragile US‑Iran ceasefire cools Oil from recent highs but does not deliver a clean de-escalation.

Commerzbank’s Tatha Ghose highlights a sharp rise in Leu volatility after Romania’s government lost a no-confidence vote, leaving Prime Minister Ilie Bolojan as caretaker. The pro‑EU coalition’s collapse clouds prospects for fiscal consolidation and EU funds.

The Australian Dollar (AUD) accelerated its uptrend against the US Dollar (USD) on Wednesday, breaching previous highs at the 0.7225 area and hitting levels near 0.7270 for the first time since June 2022.

USD/JPY drops sharply on Wednesday and trades around 155.80 at the time of writing, down 1.31% on the day, as the Japanese Yen (JPY) benefits from both suspected intervention by Japanese authorities and broad-based weakness in the US Dollar (USD).

Brown Brothers Harriman’s (BBH) Elias Haddad expects the National Bank of Poland (NBP) to keep its policy rate at 3.75% for a second consecutive meeting, effectively signalling an end to its 200 bps easing cycle over the past year.

United States MBA Mortgage Applications: -4.4% (May 1) vs previous -1.6%

The US Dollar (USD) depreciates against its main peers on Wednesday amid hopes that the US and Iran are close to a deal to end the war. The USD Index (DXY), which measures the US Dollar against a basket of currencies, drops more than 0.7% on the day, approaching pre-war levels at 97.50.

West Texas Intermediate (WTI) US Oil falls sharply on Wednesday and trades around $91.00 at the time of writing, posting an 8.91% daily decline as markets rapidly reassess geopolitical risks in the Middle East following reports from Axios suggesting major progress between the United States (US) and

ING’s Warren Patterson and Ewa Manthey note Copper has edged higher, with LME prices back above $13,000/t as markets gauge the durability of the US-Iran ceasefire.

According to Axios, the United States and Iran are moving towards a deal to end the conflict.

MUFG’s Derek Halpenny argues that recent USD/JPY moves likely reflect renewed Japanese Ministry of Finance intervention, with the pair dropping nearly three big figures after testing the 158.00 area.

Silver prices (XAG/USD) rose on Wednesday, according to FXStreet data. Silver trades at $76.78 per troy ounce, up 5.42% from the $72.83 it cost on Tuesday.

OCBC strategists Sim Moh Siong and Christopher Wong highlight that the Reserve Bank of Australia’s latest 25 bps hike to 4.35% and a more balanced guidance underpin a constructive Australian Dollar outlook.

Rabobank’s FX Strategy team argues that current market pricing for up to three Bank of England hikes over the next year is excessive given a loosening UK labour market and lacklustre growth.

Eurozone Producer Price Index (MoM) above forecasts (3.3%) in March: Actual (3.4%)