ING strategists Francesco Pesole, Frantisek Taborsky and Chris Turner highlight that higher real US yields and a bond market sell-off are reinforcing Dollar strength. They argue the move is driven by inflation concerns, making it supportive for USD.

NZD/USD trades around 0.5850 on Wednesday at the time of writing, up 0.22% on the day. Despite the moderate gains, the New Zealand Dollar (NZD) upside remains limited as the US Dollar (USD) continues to benefit from defensive demand driven by geopolitical risks.

United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann keep a mildly constructive stance on USD/JPY, expecting consolidation between 158.75 and 159.25 in the near term.

Rabobank's Senior FX Strategist Jane Foley note that reduced expectations for aggressive Bank of England (BoE) tightening are weighing on the British Pound (GBP), even as recent United Kingdom (UK) labour and Consumer Price Index (CPI) data have eased market nerves.

BNY’s Bob Savage highlights that Bank Indonesia (BI) surprised markets with a 50bp rate hike to 5.25% to stabilize the Rupiah (IDR). Governor Perry Warjiyo underscored intensified FX interventions and improved monetary tools to keep inflation within the 1.5–3.5% target for 2026–2027.

OCBC’s Christopher Wong notes USD/JPY has pushed back toward 159, driven largely by US rates dynamics rather than domestic Japanese factors. He highlights rising intervention risk as the pair approaches the 160–161 zone, with officials signalling readiness to act against excessive FX moves.

Gold (XAU/USD) holds firm on Wednesday after falling 1.85% the previous day, as a pause in the global bond sell-off helps reduce upward pressure on Treasury yields and offers some support to the non-yielding metal.

ING’s Francesco Pesole maintains a bearish bias on EUR/USD, noting markets have raised the bar for trading positive Middle East headlines. He highlights 1.1570 as key support and recalls the early-March break below 1.160.

Crude Oil prices ease from recent highs on Wednesday but remain above the key $100 level, with the US benchmark West Texas Intermediate (WTI) consolidating gains above $102.00 at the time of writing, as tensions between the US and Iran grow.

USD/JPY trades around 159.05 at the time of writing on Wednesday, virtually unchanged on the day, as investors balance several opposing factors surrounding the Japanese Yen (JPY) and the US Dollar (USD).

Brown Brothers Harriman’s (BBH) Elias Haddad reports GBP/USD is trading below 1.3400 after United Kingdom (UK) inflation undershot expectations, easing pressure on the Bank of England (BoE).

The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, reflects strength ahead of the United States (US) stock markets' opening near its six-week high of 99.40.

TD Securities’ Global Strategy Team expects the April FOMC minutes to clarify how many participants backed removing the easing bias and how divided the committee was after several hawkish dissents.

South Africa Retail Sales (YoY): 2.6% (March) vs 1.6%

United States MBA Mortgage Applications down to -2.3% in May 15 from previous 1.7%

The USD/CAD pair is up 0.2% to near 1.3772 during the European trading session on Wednesday. The Loonie pair reflects strength as the Canadian Dollar (CAD) underperforms its peers due to easing expectations that the Bank of Canada (BoC) will raise interest rates in the July policy meeting.

The Euro (EUR) nurses minor losses against the British Pound (GBP) on Wednesday, trading right above the 0.8655 support area, after losing nearly 0.7% so far this week.

The Euro (EUR) edges lower against the US Dollar (USD) on Wednesday, testing fresh six-week lows near 1.1590 at the time of writing.

The Indian Rupee (INR) continues to underperform against the US Dollar (USD) on Wednesday, trading close to its fresh all-time lows.

Deutsche Bank highlights that weaker‑than‑expected Canadian CPI reduced the perceived need for near‑term Bank of Canada tightening.

Germany 10-y Bond Auction: 3.16% vs 3.08%

Gold (XAU/USD) consolidates losses at nearly seven-week lows below $4,500 on Wednesday, trading at $4,478 at the time of writing, as the US Dollar Index (DXY) tests six-week highs at the 99.45 area.

MUFG’s Derek Halpenny argues that US Dollar strength is underpinned by rising US yields and a more hawkish shift from the Federal Reserve. He expects the FOMC minutes to reinforce inflation concerns and limit dovish expectations.

Silver prices (XAG/USD) rose on Wednesday, according to FXStreet data. Silver trades at $75.29 per troy ounce, up 2.15% from the $73.70 it cost on Tuesday.

Societe Generale analysts observe that Gold has been under pressure since losing its 50‑DMA in March and failing to reclaim it on rebounds.

EUR/CAD edges higher after posting modest losses in the previous day, trading around 1.5960 during the European hours on Wednesday. The currency cross holds ground as the commodity-linked Canadian Dollar (CAD) struggles amid lower oil prices.

Rabobank's Head of Macro Strategy Elwin de Groot highlights that United Kingdom (UK) Consumer Price Index (CPI) inflation for April undershot consensus, with services inflation easing, while UK Producer Price Index (PPI) surprised to the upside.

The AUD/USD pair attracts some buyers following an intraday dip to the 0.7085 region on Wednesday and moves away from its lowest level since April 14, touched the previous day.

Eurozone Harmonized Index of Consumer Prices (MoM) meets forecasts (1%) in April

Eurozone Core Harmonized Index of Consumer Prices (MoM) remains unchanged at 0.9% in April