Brown Brothers Harriman’s (BBH) Elias Haddad reports that the Norwegian Krone is outperforming as underlying inflation overshot expectations in May, bringing forward rate hike bets from November to September.

The Bank of Canada (BoC) is widely expected to keep its policy rate unchanged at 2.25% on Wednesday. This would be the fifth consecutive gathering with the bank keeping its hand steady.

MUFG’s Hardman and Lockhart report that Brent Oil prices have shown a muted response to renewed US–Iran military exchanges, trading near recent lows after briefly dipping below USD 90 per barrel.

The Canadian Dollar (CAD) strengthens against the US Dollar (USD) on Wednesday as traders digest the latest US Consumer Price Index (CPI) data and await the Bank of Canada's (BoC) interest rate decision.

Annual inflation in the United States (US), as measured by the change in the Consumer Price Index (CPI), rose to its highest level in three years at 4.2% in May, from 3.8% in April. This reading came in line with the market expectation.

United States Consumer Price Index Core s.a rose from previous 335.423 to 336.1213 in May

Rabobank’s Senior FX Strategist Jane Foley highlights that the Australian Dollar (AUD) has fallen from a top G10 performer to the bottom of recent rankings as growth momentum fades and USD strength weighs.

United States Consumer Price Index n.s.a (MoM) above expectations (335.11) in May: Actual (335.12)

United States Consumer Price Index ex Food & Energy (YoY) meets expectations (2.9%) in May

United States Consumer Price Index ex Food & Energy (MoM) below forecasts (0.3%) in May: Actual (0.2%)

United States Consumer Price Index (YoY) meets forecasts (4.2%) in May

United States Consumer Price Index (MoM) in line with expectations (0.5%) in May

ING strategists Warren Patterson and Ewa Manthey highlight that Chinese unwrought Aluminium and product exports rose strongly in May to the highest level since November 2024, helped by overseas demand after Middle East disruptions.

The West Texas Intermediate (WTI), futures on NYMEX, turns flat slightly above $88.00 in the European trade on Wednesday after clawing back its early losses.

Commerzbank’s Volkmar Baur notes that stronger-than-expected South African GDP growth masks weak underlying domestic demand, with consumption and private investment soft while government spending dominates.

The Japanese Yen (JPY) extends its decline on Wednesday, threading further beyond the key 160.00 per US Dollar (USD), which is considered a red zone for Tokyo intervention.

United States (US) President Donald Trump has stated in an interview with Fox News that he is close to ordering new military strikes against Iranian power plants and bridges, adding that Tehran is "taking too long to make a deal".

India M3 Money Supply remains unchanged at 12% in May 25

Gold (XAU/USD) slides to fresh 11-week lows on Wednesday as mounting speculation that the Federal Reserve (Fed) could raise interest rates later this year weighs on demand for the non-yielding metal. At the time of writing, XAU/USD is trading around $4,163, down 2.30% on the day.

BNY’s Bob Savage highlights a sharp reversal in Canadian Dollar (CAD) flows ahead of the June Bank of Canada (BoC) decision versus April, when CAD was generally bid.

Brown Brothers Harriman’s (BBH) Elias Haddad notes that the US Dollar retains upside risk as US inflation is expected to heat up in May and the disinflation trend has stalled.

TD Securities’ Robert Both updates Canada’s macro outlook as higher Oil prices push WTI above $95 through Q4, lifting headline CPI to an average 2.9% over Q2/Q3.

Gold price (XAU/USD) trades 2.1% lower at around $4,170 during the European trading session on Wednesday.

UBS Chief Economist Paul Donovan expects May United States (US) headline consumer price inflation to rise as higher Oil-related costs are passed through to consumers. He notes firms can protect profit margins by raising prices while demand holds, with US consumers drawing on savings.

United States MBA Mortgage Applications rose from previous -2.5% to 10.8% in June 5

Crude prices are trading lower for the fifth consecutive day on Wednesday, with the US benchmark West Texas Intermediate (WTI) barrel trading at $86.60 at the time of writing, more than $4 down so far this week.

Bank of Japan (BoJ) Governor Kazuo Ueda has been hospitalized, according to a statement released by the central bank.

Rabobank’s Global Strategist Michael Every expects the Bank of Canada (BoC) to keep its policy rate at 2.25%, in line with Bloomberg consensus and market pricing.

Commerzbank’s Volkmar Baur argues that a major US technology IPO could generate sizeable foreign capital inflows, supporting the US Dollar, particularly against the Euro.

Brown Brothers Harriman’s Elias Haddad highlights that USD/CAD has pulled back after testing a six‑month high but still risks grinding higher toward 1.4140.