West Texas Intermediate (WTI) crude Oil remains under pressure on Wednesday as improving crude flows through the Strait of Hormuz push prices back to levels seen before the US-Iran war, overshadowing the latest US inventory data.
Financial markets came to Sintra looking for clues about the Federal Reserve's (Fed) next move. They largely left with confirmation that Fed Chair Kevin Warsh intends to make those clues much harder to find.
The Dow Jones Industrial Average (DJIA) hit a fresh record on Wednesday, clipping 52,500 and completing a round trip from April's rout to all-time highs. The headline number flatters the detail underneath it, because the index that set this record is not quite the one that traded a week ago.
The Pound Sterling (GBP) registers a 0.14% gain on Wednesday amid broad US Dollar (USD) strength and comments by the Federal Reserve (Fed) Chair Kevin Warsh, who reiterated that the central bank would not provide forward guidance, despite accepting that inflation remains too high.
At the ECB Forum in Sintra, Fed Chair Kevin Warsh largely followed the script, offering little to change the market’s current view on monetary policy.
AUD/USD fell to 0.6900 on Wednesday and is now trading cautiously as investors digest mixed United States (US) economic data. The latest ISM Manufacturing Purchasing Managers Index (PMI) showing factory activity remained in expansion, while ADP private payrolls pointed to a softer pace of hiring.
EUR/USD pares some of its losses on Wednesday as softer-than-expected US economic data and remarks from Federal Reserve (Fed) Chair Kevin Warsh weigh on the US Dollar (USD).
Societe Generale’s Dev Ashish notes that Banco de la República delivered a larger-than-expected 75bp hike to 12%, reinforcing a restrictive stance as inflation and expectations stay well above target.
Silver (XAG/USD) rebounds on Wednesday and trades around $60.35, up 3.19% at the time of writing. The white metal is supported by a weaker US Dollar (USD) following softer-than-expected US economic data and comments from Federal Reserve (Fed) Chair Kevin Warsh.
DBS' Senior Economist Radhika Rao with data support from Daisy Sharma, highlights that India’s real Gross Domestic Product (GDP) grew 7.8% year-on-year in 1Q26, slightly below the revised 8.0% in 3QFY26.
National Bank of Canada's (NBC) Kyle Dahms notes that the Canadian economy began Q2 on a stronger-than-expected footing, with real Gross Domestic Product (GDP) boosted by energy, manufacturing and construction.
HSBC’s Willem Sels and Lucia Ku note that UK inflation remains above target but see risks as more balanced after the US-Iran interim peace agreement.
Commerzbank’s Dr. Ralph Solveen notes that Eurozone inflation fell to 2.8% in June, mainly on lower energy prices, while core inflation eased to 2.4%. The bank expects overall inflation to stay close to 3% in coming months.
Gold (XAU/USD) advances above the $4,000 psychological mark on Wednesday as the US Dollar (USD) eases following remarks from Federal Reserve (Fed) Chair Kevin Warsh and softer-than-expected US economic data.
TD Securities’ Ryan McKay and Bart Melek note that Copper remains under pressure as the missed June 30 Section 232 tariff update removes a near-term supply risk and weakens short-term momentum.
The Institute for Supply Management’s (ISM) data showed the Manufacturing PMI edging lower to 53.3 in June, down from May's print and analysts’ expectations of 54.
USD/CHF trims gains on Wednesday as remarks from Federal Reserve (Fed) Chair Kevin Warsh weigh modestly on the US Dollar (USD). However, expectations for a Fed rate hike and a lack of clarity surrounding US-Iran negotiations keep the Greenback's downside contained.
Federal Reserve (Fed) Chairman Kevin Warsh reiterated that he will not be giving forward guidance on policy, while participating at a panel at the ECB Forum on Central Banking 2026.
OCBC’s Sim Moh Siong and Christopher Wong have lowered their end‑2026 forecasts for Gold and Silver, citing a tougher near‑term macro backdrop with higher real yields, a stronger US Dollar (USD) and slower ETF demand.
The Japanese Yen (JPY) continues to trade near levels last seen in 1986 against the US Dollar.
ING strategists Michiel Tukker and Padhraic Garvey highlight that Sterling markets remain highly sensitive to UK inflation risks, especially around near-term fiscal spending plans.
NZD/USD trades lower at 0.5660 on Wednesday, down 0.32%, reversing part of the previous day's rebound. The pair remains under pressure as the New Zealand Dollar (NZD) is weighed down by a more cautious market environment, while the US Dollar (USD) continues to strengthen.
European Central Bank (ECB) President Christine Lagarde speaks at a policy panel at the ECB Forum on Central Banking 2026.
Nordea’s analysts argue that softer June inflation data should significantly lower the risk of another European Central Bank (ECB) rate hike in July.
While speaking at a policy panel at the European Central Bank's (ECB) Forum on Central Banking, Bank of Governor (BoE) Andrew Bailey acknowledged that they have a softening economy and labour market.
DBS Group Research strategist Chang Wei Liang notes that USD/JPY has surged above the mid-162 area as markets probe Japanese authorities’ tolerance for further Japanese Yen (JPY) weakness.
OCBC’s Sim Moh Siong and Christopher Wong highlight that Fed Chair Kevin Warsh’s appearance at Sintra and upcoming United States (US) payrolls are key for the US Dollar (USD).
HSBC analysts Willem Sels and Lucia Ku argue that concerns over mega IPOs and stretched valuations in US equities are offset by solid earnings growth across most S&P 500 sectors, driven by AI-related demand.
The Euro (EUR) falls against the British Pound (GBP) on Wednesday after softer-than-expected Eurozone inflation data reduced expectations for another European Central Bank (ECB) interest rate increase this year.
Chris Turner at ING argues the ECB is unlikely to drop its tightening rhetoric yet, even if a second September hike might be a mistake.
Exclusive insights, trading signals, and real-time updates for registered users.