West Texas Intermediate (WTI) advances toward $94.00 at the time of writing, up 2.52% on the day, supported by a fresh escalation of geopolitical tensions in the Middle East and growing concerns about global Oil supplies.

BNY’s Bob Savage highlights that USD/JPY remains close to 160.00 as markets price a high probability of a June BoJ rate hike, yet see Governor Ueda as insufficiently hawkish. Japanese authorities stress G7 agreement on limiting excessive FX volatility and pledge cooperation with the U.S.

The Institute for Supply Management (ISM) is scheduled to release the May Services Purchasing Managers Index (PMI) on  Wednesday. Market participants anticipate a modest improvement, with the index forecast at 53.8, up from 53.6 in April.

Gold (XAU/USD) trades lower on Wednesday as escalating tensions in the Middle East dampen hopes for a near-term US-Iran peace deal. At the time of writing, XAU/USD is trading around $4,455, down nearly 1.85% so far this week.

ING economist James Smith argues that a June Bank of England (BoE) rate hike now appears unlikely as weaker United Kingdom (UK) data and lower Oil prices ease pressure on policymakers.

Standard Chartered economists Dan Pan and Steve Englander note that recent QCEW data validate softer NFP readings in late 2025, when government shutdown effects and DOGE layoffs weighed on employment.

Canada Labor Productivity (QoQ) came in at -0.5% below forecasts (0.7%) in 1Q

Private sector employment in the United States grew by 122K in May, the Automatic Data Processing (ADP) reported on Wednesday. This print followed the 105K increase recorded in April and came in better than the market expectation for an increase of 117K.

Rabobank strategist Molly Schwartz notes that Canada has entered a technical recession, with Gross Domestic Product (GDP) contracting for two consecutive quarters and missing expectations.

United States ADP Employment Change came in at 122K, above forecasts (117K) in May

UOB economist Lee Sue Ann notes that softer Australian Gross Domestic Product (GDP), easing inflation and a cooling labour market have reduced pressure on the Reserve Bank of Australia (RBA) to tighten further.

Brazil Industrial Output (YoY) registered at 2.7% above expectations (1.7%) in April

Brazil Industrial Output (MoM) came in at 0.7%, above expectations (0.4%) in April

DBS Group Research economist Radhika Rao argues that Eurozone markets face a stagflationary shock from US-Iran tensions that will hit Europe harder than the US, pushing the European Central Bank (ECB) to tighten policy earlier.

Gold (XAU/USD) resumed its near-term downtrend on Wednesday, with bears pushing against the intra-week lows at the $4,450 area.

BNY’s Bob Savage notes that WTI and Brent prices are rising for a third day as United States (US)-Iran tensions escalate, with missile and drone attacks in the Gulf region pushing benchmarks toward and above USD 90.

Silver (XAG/USD) trades around $74.50 on Wednesday at the time of writing, down 0.88% on the day. The white metal is facing selling pressure as the US Dollar (USD) continues to recover, supported by escalating geopolitical tensions in the Middle East.

Brown Brothers Harriman’s (BBH) Elias Haddad notes that renewed US–Iran tensions have lifted the Dollar, Oil and global bond yields, with a restrictive Federal Reserve (Fed) backdrop seen as supportive for further Dollar strength.

European Central Bank (ECB) Vice-Chair of the Supervisory Board Frank Elderson said during the European trading session on Wednesday that the balance of risks has clearly deteriorated due to Middle East conflicts.

United States MBA Mortgage Applications increased to -2.5% in May 29 from previous -8.5%

The Euro (EUR) resumed its downtrend against a stronger US Dollar (USD) on Wednesday, with bears testing support at the 1.1600 level.

The European Central Bank (ECB) could tighten monetary policy sooner than previously expected, according to the latest Reuters poll of economists.

In a podcast interview on Wednesday, US President Donald Trump said that “Iran has agreed they will not have a nuclear weapon.”

Rabobank’s Senior FX Strategist Jane Foley discusses USD/JPY’s sharp pullback after comments from PM Takaichi and Bank of Japan (BoJ) Governor Ueda. Foley highlights renewed FX intervention risks, a still-firm US Dollar (USD) and speculation over a June BoJ rate hike.

Swiss National Bank (SNB) Chairman Martin Schlegel said during the European trading session on Wednesday that the central bank has increased its readiness to intervene in the Forex market.

EUR/GBP trades around 0.8635 on Wednesday at the time of writing, with limited movement on the day as investors assess a fresh batch of revised macroeconomic data from the Eurozone and the United Kingdom (UK).

TD Securities strategists highlight upcoming US data, expecting the ISM Services Index to rise, supported by new orders and supply chain issues linked to the Iran conflict.

The New Zealand Dollar (NZD) depreciates for the third consecutive day against a stronger US Dollar (USD) on Wednesday, hitting lows below 0.5900.

MUFG’s Derek Halpenny argues that strong United Kingdom (UK) credit and mortgage data, alongside elevated UK front-end yields, support the case for further Bank of England (BoE) tightening.

The Japanese Yen (JPY) reflects a sudden jump against its major currency peers in the European trading session on Wednesday. There is a noticeable uptick in the Asia-Pacific currency against its peer, pushing EUR/JPY over 0.3% down to near 185.40.