Iran's Foreign Ministry has stated during the European trading session on Wednesday that it condemns United States (US) strikes on Iranian tanker and Qeshm island.

UOB strategists Quek Ser Leang and Lee Sue Ann note AUD/USD failed to retest 0.7135 and instead held in a tight 0.7153–0.7187 band, but still sees a soft tone with scope for a drift toward 0.7150.

Danske Research Team notes that EUR/DKK hit a new historic high at 7.4739, with the Danish central bank refraining from FX intervention in May. They argue that while the bank shows patience with upward pressure, continued strength would likely prompt action to cap EUR/DKK.

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.

Bank of Japan (BoJ) Governor Kazuo Ueda reaffirms that the direction of the monetary policy remains on the upside, while speaking at the Kisaragi-kai Meeting on Wednesday.

Chris Turner at ING highlights that last year’s US Dollar (USD) debasement trade favoured the Swiss Franc (CHF), Gold and bitcoin, but a more hawkish Fed view could reverse this.

United Kingdom S&P Global Composite PMI came in at 49.7, above expectations (48.5) in May

United Kingdom S&P Global Services PMI registered at 49.3 above expectations (47.9) in May

TD Securities strategists Prashant Newnaha and Alex Loo note that Australian Q1 Gross Domestic Product (GDP) matched the Reserve Bank of Australia’s (RBA) 0.3% q/q implied forecast, but highlight that household and government spending are weak while data centre investment props up activity.

According to a report from NHK released in the European trading session on Wednesday, Japan’s Prime Minister (PM) Sanae Takaichi is planning to travel to Europe from the latter half of next week to attend the G7 Summit in France.

Danske Research Team notes that EUR/USD stayed broadly unchanged in a 1.1620–1.1650 range as short-term US and Euro area rates were steady. The analysts highlight stronger US JOLTS data and a robust labour market, which they say is no longer cooling.

The Indonesian Rupiah (IDR) continues to face severe downward pressure as a combination of domestic policy uncertainty and a hostile global environment dampens sentiment toward the Asian currency.

Asian equities performed mixed as traders adopted caution while monitoring US–Iran talks, with mixed signals from both sides keeping geopolitical uncertainty elevated.

Spain HCOB Services PMI came in at 50.1, above forecasts (48) in May

UOB strategists Quek Ser Leang and Lee Sue Ann describe GBP/USD price action as range-bound after a brief drop to 1.3407, expecting the pair to edge lower toward 1.3430 while keeping 1.3405 as distant support.

OCBC’s FX Strategists Sim Moh Siong and Christopher Wong reiterate their Fragile Oil Balance view, stating that Brent has fallen below USD100/bbl on ceasefire optimism but remains supported by elevated geopolitical risks and Hormuz vulnerability.

Danske Research Team observes that equities rose again, led by Tech, with many indices hitting new all-time highs. They attribute the move mainly to positive macro news and stronger US labour data, which eased concerns about the US economy.

Commerzbank analysts Michael Pfister and Norman Liebke preview Swiss inflation for May, expecting headline at 0.6% versus consensus 0.7% and core at 0.3%. They stress that recent Gross Domestic Product (GDP) data support this benign outlook.

UOB strategists Quek Ser Leang and Lee Sue Ann keep EUR/USD in a neutral short-term range, seeing the pair oscillating between 1.1590 and 1.1685 after a brief dip to 1.1606.

Russia S&P Global Services PMI: 48.7 (May) vs previous 49.7

India HSBC Services PMI came in at 59.8, above forecasts (59) in May

India HSBC Composite PMI increased to 59.3 in May from previous 58.1

European Central Bank (ECB) policymaker and the head of Belgium's central bank, Pierre Wunsch, said in an interview with Financial Times (FT), released on Wednesday, that the likelihood of central bank tightening monetary conditions in the policy meeting next week will remain firm, even if the Unite

The United States (US) plans to impose fresh tariffs of at least 10% on imports from major trading partners due to forced-labor practices. India may face a higher 12.5% tariff, the Mint news agency reported on Wednesday.

China's Services Purchasing Managers' Index (PMI) rose to 54.4 in May from 52.6 in April, the latest data published by RatingDog showed on Wednesday. This figure came in stronger than the market expectations of 52.3.

China RatingDog Services PMI above forecasts (52.3) in May: Actual (54.4)

Australia Gross Domestic Product (QoQ) below forecasts (0.5%) in 1Q: Actual (0.3%)

Australia Gross Domestic Product (YoY) came in at 2.5%, below expectations (2.7%) in 1Q

Japan Jibun Bank Services PMI in line with expectations (50) in May

Japan’s Finance Minister Satsuki Katayama said on Wednesday that the authorities are ready to act on the foreign exchange if required.