EUR/USD remains hovering within a tight range around the 1.1650 level, showing a flat performance on the daily chart.

The United States (US) Census Bureau will publish November Retail Sales on Wednesday. The delayed data is expected to show that sales rose a modest 0.4% in the month, following no change in October.

Gold (XAU/USD) extends gains on Wednesday, reaching a fresh all-time high above $4,630 ahead of the US session opening.

Gold (XAU/USD) regains a positive footing on Wednesday after a shallow pullback from record highs the previous day, as lingering economic and geopolitical uncertainties continue to underpin safe-haven demand.

Silver (XAG/USD) extends its bullish momentum on Wednesday and trades around $90.50 at the time of writing, up 4.30% on the day.

United States MBA Mortgage Applications climbed from previous 0.3% to 28.5% in January 9

The Pound Sterling (GBP) gains against its major peers, except antipodeans, on Wednesday. The British currency trades higher ahead of the United Kingdom (UK) monthly Gross Domestic Product (GDP) and factory data, which will be released on Thursday.

The USD/CAD pair trades flat around 1.3885 during the European trading session on Wednesday. The Loonie pair consolidates ahead of the United States (US) Producer Price Index (PPI) data for October and November, and the Retail Sales data for November.

USD/JPY eased below 159.00 after hitting 159.45 overnight, prompting fresh warnings from Japanese Finance Minister Satsuki Katayama against speculative or excessive yen movements, BBH FX analysts report.

USD/CNH remains just above this week’s cyclical low near 6.9600 as China’s December trade data exceeded expectations, with both exports and imports showing solid year-on-year growth, BBH FX analysts report.

The Japanese Yen is trimming some losses on Wednesday as the US Dollar recovery falters.

US inflation came in softer than consensus and notably below our own expectation of a 0.4% month‑on‑month core reading.

Prices of Gold and Silver reversed the earlier dip to trade fresh highs for the session. The earlier dip was a knee-jerk response to new margin changes.

Germany 30-y Bond Auction increased to 3.45% from previous 3.26%

European Union (EU) Commission President Ursula von der Leyen announced the allocation of funds for Ukraine’s military and budget support during the European trading session on Wednesday.

US Dollar (USD) is likely to trade in a range between 6.9650 and 6.9800. In the longer run, USD remains neutral but is now expected to trade in a lower range of 6.9520/6.9900, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

United Kingdom 10-y Bond Auction: 4.456% vs previous 4.613%

Oil prices climbed sharply, with Brent rising toward multi‑week highs near the mid‑$60s as escalating unrest in Iran and the threat of U.S. tariffs on countries trading with Tehran boosted supply disruption fears and added a geopolitical risk premium to crude markets, OCBC's FX analysts Sim Moh Sion

Strong momentum indicates further US Dollar (USD) strength; the significant resistance at 160.00 is likely out of reach for now. In the longer run, strong USD rally has scope to extend, potentially breaking above 160.00, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Speculation over early elections in Japan has driven renewed Japanese Yen (JPY) underperformance, pushing USD/JPY toward the 160 level while lifting JGB yields and domestic equities.

The Indian Rupee (INR) trades marginally higher against the US Dollar in the opening session on Wednesday. The USD/INR pair drops to near 90.40 as the Indian Rupee ticks up on the outcome of trade talks between the United States (US) and India on Tuesday.

EUR/GBP trades around 0.8660 on Wednesday at the time of writing, down 0.12% on the day, as the Pound Sterling (GBP) benefits from cautious investor positioning ahead of UK growth data.

The New Zealand Dollar is ticking higher on Wednesday but remains trading within Tuesday’s range, with upside attempts capped below 0.5750 and FX volatility subdued.

Japan’s Ruling Ishin Party Leader Yoshimura said during European trading hours on Wednesday that Prime Minister (PM) Sanae Takaichi will call a snap election at the beginning of the parliamentary session.

Slight increase in downward momentum is likely to lead to a lower range of 0.5720/0.5765 rather than a continued decline. In the longer run, for the time being, NZD is likely to trade in a range between 0.5720 and 0.5805, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Silver has extended its breakout and is approaching the upper boundary of a steep ascending channel near $96.50–$97.00, with momentum indicators at multi-year highs despite clear signs of an overstretched trend, Société Générale's FX analysts note.

There is a chance for Australian Dollar (AUD) to test 0.6670; the major support at 0.6655 is not expected to come into view. In the longer run, the current price movements are likely part of a range-trading phase between 0.6655 and 0.6745, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

There seems to be no way of stopping the USD/JPY rally. Speculation of snap elections is mounting, and the return of some degree of political risk premium is offering another chance to test Japan’s tolerance band on its currency.

GBP/JPY eases below 214.00 after hitting fresh all-time highs at 214.30.

Pullback has scope to extend; the major support at 1.3390 is unlikely to come under threat. In the longer run, GBP is likely in a range-trading phase between 1.3390 and 1.3520, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.