MUFG’s Lee Hardman notes that the Dollar has rebounded sharply as Operation “Epic Fury” triggers a fresh energy price shock, pushing the Dollar index back toward the 96.000–100.00 range.

Comments from US Treasury Secretary Scott Bessent on Wednesday offered a broad snapshot of the US administration’s thinking on the labour market, trade policy and energy security, as markets continue to navigate heightened geopolitical tensions and renewed volatility in oil prices.

BNY’s Head of Markets Macro Strategy Bob Savage highlights that Eurozone composite PMI has risen to a three‑month high, extending private sector expansion, with Germany leading and France still in mild contraction.

The Automatic Data Processing (ADP) Research Institute will release its monthly report on private-sector job creation for February on Wednesday.

Gold (XAU/USD) edges higher on Wednesday, recovering part of the previous day’s sharp decline as the US Dollar (USD) takes a breather after two days of solid gains. Meanwhile, ongoing geopolitical tensions surrounding the US-Iran war keep safe-haven demand in play, helping cushion the downside.

Iran may have quietly explored the possibility of opening communication channels with the United States (US) despite the ongoing conflict, according to a report from the New York Times cited by Reuters on Wednesday.

Rabobank's Senior FX Strategist Jane Foley discusses USD/JPY backing off highs near 158 as profit taking and hawkish comments from BoJ Governor Ueda support the Japanese Yen. The bank highlights Japan’s vulnerability to higher energy prices but stresses the Yen’s safe haven role.

United States MBA Mortgage Applications increased to 11% in February 27 from previous 0.4%

TD Securities’ Global Strategy Team notes that UK Chancellor Reeves delivered a cautious Spring Statement with no major new policies. Updated OBR projections show slightly slower UK growth in 2026 but stronger growth thereafter, alongside lower inflation forecasts.

Brown Brothers Harriman’s Elias Haddad notes the Dollar has retraced part of its recent surge but still benefits from short-term haven demand linked to Dollar funding needs. Rising cross-currency basis points to higher USD borrowing costs as stress lifts demand for short-term funding.

EUR/JPY trades around 183.00 on Tuesday at the time of writing, down 0.10% on the day, as the Japanese Yen (JPY) benefits from renewed safe-haven demand amid rising geopolitical tensions in the Middle East.

Italy Gross Domestic Product (YoY) meets forecasts (0.8%) in 4Q

Italy Gross Domestic Product (QoQ) in line with expectations (0.3%) in 4Q

Eurozone Producer Price Index (YoY) came in at -2.1%, above expectations (-2.7%) in January

Eurozone Producer Price Index (MoM) registered at 0.7% above expectations (0.2%) in January

Eurozone Unemployment Rate came in at 6.1% below forecasts (6.2%) in January

Commerzbank’s Tatha Ghose expects Poland’s NBP to deliver a 25 bps rate cut today, with slower-than-anticipated inflation justifying easing.

Silver prices (XAG/USD) rose on Wednesday, according to FXStreet data. Silver trades at $85.64 per troy ounce, up 3.84% from the $82.48 it cost on Tuesday.

United Kingdom S&P Global Services PMI meets forecasts (53.9) in February

United Kingdom S&P Global Composite PMI came in at 53.7, below expectations (53.9) in February

Nomura analyzes Swiss inflation and Swiss Franc dynamics, noting that February CPI stayed at 0.1% year-on-year, slightly above its forecast. The bank highlights that CHF strength is lowering imported prices, offsetting some energy risks.

The Indian Rupee (INR) declines against the US Dollar (USD), extending its losing streak for the fifth successive session. The USD/INR pair reached a fresh record high of 92.67 during the Asian hours on Wednesday.

EUR/USD extends its losses for the third successive session, trading around 1.1600 during the European hours on Wednesday. The pair holds losses following the release of February’s HCOB Purchasing Managers’ Index (PMI) data from Germany and the Eurozone.

Rabobank's Senior Macro Strategist Bas van Geffen notes that markets are treating the Middle East conflict as an inflation risk for the Eurozone. He highlights that EUR money markets now partly price an ECB rate hike this year.

Gold (XAU/USD) struggles to capitalize on its modest intraday gains and remains below the $5,200 mark through the first half of the European session on Wednesday.

West Texas Intermediate (WTI) US Crude Oil prices attract fresh buyers on Wednesday and climb back closer to the highest level since January 2025, touched the previous day.

Italy Unemployment below forecasts (5.6%) in January: Actual (5.1%)

Eurozone HCOB Composite PMI in line with expectations (51.9) in February

Eurozone HCOB Services PMI registered at 51.9 above expectations (51.8) in February

Germany HCOB Composite PMI above expectations (53.1) in February: Actual (53.2)