South Korea FX Reserves fell from previous 427.88B to 426.99B in May

Lorie Logan, President of the Federal Reserve (Fed) Bank of Dallas, said on Wednesday that inflation remains too elevated and warned that higher interest rates could be needed later this year if price pressures fail to ease further.

DBS Group Research’s Radhika Rao expects Philippines inflation to climb further above the Bangko Sentral ng Pilipinas’ (BSP) target, driven by food, fuel and currency weakness. She notes some easing in sequential pressures from lower fuel prices and utilities.

According to Fars, Saeed Ajorlou, a member of the Iranian negotiating team, outlined a four-stage proposal for a deal between Iran and the US

The Federal Reserve (Fed) released the latest Beige Book on Wednesday, which the Federal Open Market Committee (FOMC) uses in discussions about setting monetary policy. The Beige Book gathers information from the Fed's 12 districts and provides an overall picture of the US economy.

DBS Group Research economist Radhika Rao notes that Indonesia’s May inflation accelerated on higher food and energy costs but remains within Bank Indonesia’s target band. She highlights weather risks, Rupiah weakness and a shrinking trade surplus as key concerns.

OCBC’s FX Strategists Sim Moh Siong and Christopher Wong note that the CNY has gained 3.3% against the Dollar this year, outperforming Asian peers and strengthening on the CFETS basket.

MUFG’s Lloyd Chan highlights that Indonesia is undergoing a structural regime shift as the state moves toward direct control of key commodity exports via Danantara Sumberdaya Indonesia.

Russia Unemployment Rate meets forecasts (2.2%) in April

DBS Group Research, led by Radhika Rao with contributions from Daisy Sharma, expects India’s real GDP growth to slow in early 2026 after a firm second half of FY26.

Federal Reserve (Fed) Bank of New York President John Williams said on Wednesday that higher energy prices are driving up costs and inflation, per Reuters.

ING’s Padhraic Garvey and Michiel Tukker stress that Eurozone real rates are increasingly driven by structural forces such as fiscal expansion and record bond supply. They point to rising 10Y euro implied real rates since 2024, helped by German spending plans.

United States ISM Services New Orders Index climbed from previous 53.5 to 57.3 in May

United States ISM Services PMI came in at 54.5, above forecasts (53.8) in May

United States ISM Services Prices Paid: 71.3 (May) vs 70.7

United States ISM Services Employment Index dipped from previous 48 to 47.9 in May

United States Factory Orders (MoM) came in at 4.8%, above forecasts (4.6%) in April

The final reading of the United States (US) S&P Global Services PMI came in at 50.7 in May, compared to the previous 50.9 and missing estimates of 50.9. Meanwhile, the Composite PMI was confirmed at 51.5 in the same month, slightly below the anticipated 51.7.

United States S&P Global Composite PMI came in at 51.5, below expectations (51.7) in May

United States S&P Global Services PMI registered at 50.7, below expectations (50.9) in May

Societe Generale’s Santosh Ejantkar and Tanmay Purohit note India’s equity market has slipped to seventh globally, overtaken by South Korea and Taiwan as their semiconductor-heavy markets benefit from the AI boom.

UOB economist Lee Sue Ann highlights that Australia’s GDP growth slowed to 0.3% q/q in 1Q26 as weak public spending, trade drag and cyclone disruptions offset strong business investment.

TradingKey - On June 3, Eastern Time, the U.S. released ADP employment data for May, showing that private sector employment increased by 122,000, exceeding market expectations of approximately 118,000

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.