European Union (EU) Commission President Ursula von der Leyen announced the allocation of funds for Ukraine’s military and budget support during the European trading session on Wednesday.

US Dollar (USD) is likely to trade in a range between 6.9650 and 6.9800. In the longer run, USD remains neutral but is now expected to trade in a lower range of 6.9520/6.9900, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

United Kingdom 10-y Bond Auction: 4.456% vs previous 4.613%

Japan’s Ruling Ishin Party Leader Yoshimura said during European trading hours on Wednesday that Prime Minister (PM) Sanae Takaichi will call a snap election at the beginning of the parliamentary session.

Silver has extended its breakout and is approaching the upper boundary of a steep ascending channel near $96.50–$97.00, with momentum indicators at multi-year highs despite clear signs of an overstretched trend, Société Générale's FX analysts note.

Pullback has scope to extend; the major support at 1.3390 is unlikely to come under threat. In the longer run, GBP is likely in a range-trading phase between 1.3390 and 1.3520, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

A US delegation led by JD Vance and Marco Rubio meets Danish and Greenlandic officials today, but markets have so far priced little risk from US threats, leaving only modest scope for any geopolitical premium to unwind, ING's FX analyst Francesco Pesole notes.

European Central Bank (ECB) Vice President Luis de Guindos said in a speech during European trading hours on Wednesday that there are noticeable downside growth risks due to geopolitical woes.

Bank of England (BoE) policymaker Alan Taylor said in a summit at National University of Singapore that he expects interest rates to fall to their neutral levels soon.

Japan Chief Cabinet Secretary Seiji Kihara said during European trading hours on Wednesday that the government could intervene due to one-way excessive moves against the Japanese Yen (JPY).

Sweden New Orders Manufacturing (YoY) climbed from previous 12.1% to 23% in November

The United States (US) Census Bureau will publish November Retail Sales on Wednesday. The delayed data is expected to show that sales rose a modest 0.4% in the month, following no change in October.

Bank of Japan (BoJ) Governor Kazuo Ueda said that he still intends to lift interest rates if economic and price development are in line with the forecast, wages and prices rise moderately, Bloomberg reported on Wednesday. 

India WPI Inflation came in at 0.83%, above expectations (0.3%) in December

China Trade Balance USD above expectations ($113.6B) in December: Actual ($114.1B)

China Exports (YoY) CNY dipped from previous 5.7% to 5.2% in December

China Imports (YoY) above forecasts (0.9%) in December: Actual (5.7%)

China Trade Balance CNY rose from previous 792.57B to 808.8B in December

China Exports (YoY) registered at 6.6% above expectations (3%) in December

The GBP/USD pair trades in negative territory around 1.3425 during the Asian trading hours on Wednesday, pressured by renewed US Dollar (USD) demand. Traders brace for the US Retail Sales and Producer Price Index (PPI) data later on Wednesday.

New Zealand ANZ Commodity Price fell from previous -1.6% to -2.1% in December

Japan Money Supply M2+CD (YoY): 1.7% (December) vs previous 1.8%

Federal Reserve (Fed) Bank of Richmond President Thomas Barkin said on Wednesday that countries that safeguard monetary policy autonomy tend to achieve better economic outcomes, as political pressure on the US Federal Reserve remains in focus.

South Korea Import Price Growth (YoY): 0.3% (December) vs previous 2.2%

South Korea Export Price Growth (YoY) fell from previous 7% to 5.5% in December

Argentina Consumer Price Index (MoM) above expectations (2.5%) in December: Actual (2.8%)

United States Monthly Budget Statement came in at $-145B, above forecasts ($-150B) in December

United States 30-Year Bond Auction rose from previous 4.773% to 4.825%

Fed’s Musalem (St Louis) said the US economy is likely to grow at or above its potential in 2026, helped by fiscal support and the lagged effects of earlier rate cuts.

United States New Home Sales (MoM) declined to 0.738M in September from previous 0.8M