Latest Forex News

Silver (XAG/USD) remains under pressure on Wednesday and trades around $64.70 at the time of writing, down 1.02% on the day.

The Pound Sterling rose by over 0.19% on Wednesday after US inflation matched estimates, though the headline Consumer Price Index (CPI) reached a three-year high. The GBP/USD trades near 1.3400 after bouncing off daily lows of 1.3362.

The AUD/USD pair trades near 0.7020 on Wednesday, as the Australian Dollar (AUD) continues to lose value after the latest United States (US) inflation report was released mostly in line with expectations, reinforcing the view that the Federal Reserve (Fed) could keep interest rates elevated for long

Gold (XAU/USD) remains under pressure on Wednesday as the latest US inflation data broadly matched market expectations and did little to alter expectations that the Federal Reserve could raise interest rates later this year.

Nordea’s Jan Størup Nielsen notes that Danish consumer prices rose 1.9% year-over-year in May, with core inflation at 2.1%, its highest level since the start of 2024. Monthly inflation was driven by higher hotel and travel prices, while food and non-alcoholic beverages fell.

Bank of Canada (BoC) Governor Tiff Macklem took questions from reporters, offering markets a clearer sense of how the central bank was thinking. His remarks followed the widely expected decision to keep the policy rate on hold at 2.25%.

The Euro (EUR) holds modest gains against the US Dollar (USD) on Wednesday as the Greenback comes under modest pressure following the release of US inflation data. At the time of writing, EUR/USD trades around 1.15548, up 0.15% on the day.

Scotiabank’s Shaun Osborne and Eric Theoret say the Japanese Yen (JPY) is soft and underperforming most G10 currencies despite stronger Producer Price Index (PPI) data, with markets fully pricing a 25 bps Bank of Japan (BoJ) hike next week and another by December.

TD Securities strategists note that a softer United States (US) core Consumer Price Index (CPI) print triggered only modest US Dollar (USD) weakness. They argue the broad USD uptrend remains in place, supported by strong payrolls and geopolitical tensions.

Rabobank strategists Molly Schwartz and Christian Lawrence discusses Mexico in its latest Mexican Peso (MXN) Market Musings, noting that the Mexican Peso has gained against the US Dollar (USD) year-to-date but weakened recently.

NZD/USD trades around 0.5815 at the time of writing on Wednesday, little changed on the day, as investors digest a series of macroeconomic releases from China and the United States (US).

ING’s Frantisek Taborsky notes Czech inflation has surprised on the downside, but strong wage growth and stable core inflation keep the Czech National Bank on track for a rate hike at its June meeting.

Scotiabank’s Shaun Osborne and Eric Theoret note GBP/USD is slightly higher, British Pound (GBP) outperforming most G10 peers except the Canadian Dollar (CAD) and Norwegian Krone (NOK), as traders await UK trade and industrial production data before the June 18 BoE meeting.

BNY highlights that European governments have raised a record USD 504 billion via syndicated bonds in 2026, driven by defense, infrastructure and energy-transition spending. Despite higher yields and rate uncertainty, demand remains strong, helping governments manage refinancing needs.

Brown Brothers Harriman’s (BBH) Elias Haddad reports that the Norwegian Krone is outperforming as underlying inflation overshot expectations in May, bringing forward rate hike bets from November to September.

MUFG’s Hardman and Lockhart report that Brent Oil prices have shown a muted response to renewed US–Iran military exchanges, trading near recent lows after briefly dipping below USD 90 per barrel.

The Canadian Dollar (CAD) strengthens against the US Dollar (USD) on Wednesday as traders digest the latest US Consumer Price Index (CPI) data and await the Bank of Canada's (BoC) interest rate decision.

Annual inflation in the United States (US), as measured by the change in the Consumer Price Index (CPI), rose to its highest level in three years at 4.2% in May, from 3.8% in April. This reading came in line with the market expectation.

Rabobank’s Senior FX Strategist Jane Foley highlights that the Australian Dollar (AUD) has fallen from a top G10 performer to the bottom of recent rankings as growth momentum fades and USD strength weighs.

ING strategists Warren Patterson and Ewa Manthey highlight that Chinese unwrought Aluminium and product exports rose strongly in May to the highest level since November 2024, helped by overseas demand after Middle East disruptions.

The West Texas Intermediate (WTI), futures on NYMEX, turns flat slightly above $88.00 in the European trade on Wednesday after clawing back its early losses.

Commerzbank’s Volkmar Baur notes that stronger-than-expected South African GDP growth masks weak underlying domestic demand, with consumption and private investment soft while government spending dominates.

The Japanese Yen (JPY) extends its decline on Wednesday, threading further beyond the key 160.00 per US Dollar (USD), which is considered a red zone for Tokyo intervention.

United States (US) President Donald Trump has stated in an interview with Fox News that he is close to ordering new military strikes against Iranian power plants and bridges, adding that Tehran is "taking too long to make a deal".

BNY’s Bob Savage highlights a sharp reversal in Canadian Dollar (CAD) flows ahead of the June Bank of Canada (BoC) decision versus April, when CAD was generally bid.

Brown Brothers Harriman’s (BBH) Elias Haddad notes that the US Dollar retains upside risk as US inflation is expected to heat up in May and the disinflation trend has stalled.

TD Securities’ Robert Both updates Canada’s macro outlook as higher Oil prices push WTI above $95 through Q4, lifting headline CPI to an average 2.9% over Q2/Q3.

Gold price (XAU/USD) trades 2.1% lower at around $4,170 during the European trading session on Wednesday.

UBS Chief Economist Paul Donovan expects May United States (US) headline consumer price inflation to rise as higher Oil-related costs are passed through to consumers. He notes firms can protect profit margins by raising prices while demand holds, with US consumers drawing on savings.

Crude prices are trading lower for the fifth consecutive day on Wednesday, with the US benchmark West Texas Intermediate (WTI) barrel trading at $86.60 at the time of writing, more than $4 down so far this week.