United States (US) Commerce Secretary Howard Lutnick said during the European trading session on Wednesday that there will be a tariff relief if the company builds in the US.

India’s macroeconomic outlook has strengthened following a sharp Q1-FY27 Gross Domestic Product (GDP) print of 7.8%, prompting financial institutions to upgrade both medium-term growth projections and interest rate expectations.

Commerzbank’s Antje Praefcke notes that markets are fully pricing an European Central Bank (ECB) rate hike next week after Euro Area inflation rose to 3.3%, but she doubts further tightening beyond September as projections show inflation declining into 2027.

EUR/CAD gains ground for the second successive day, trading around 1.6120 during the European hours on Wednesday. The currency cross gains ground as the commodity-linked Canadian Dollar (CAD) faces pressure from declining oil prices.

ING’s Chris Turner notes the Dollar is holding gains after Kevin Warsh’s hawkish comments and a renewed spike in energy prices, with markets now expecting a Federal Reserve rate hike in September.

USD/IDR extends its gains for the second successive day, trading around 17,810 during the European hours on Wednesday.

Societe Generale’s Kunal Kundu now expects the RBI to deliver three 25bp rate hikes, taking the repo rate from 5.25% to 6.00% by early 2027, versus two hikes previously.

Here is what you need to know on Wednesday, September 2:

Deutsche Bank’s Jim Reid notes that rising nominal and real yields pressured global equities, with US and European stocks falling and losses extending across Asia. US technology shares underperformed, while European declines were more moderate.

TradingKey - Elon Musk has once again made extremely aggressive predictions about AI and robotics.Speaking via video link at a G20-related meeting in Asheville, North Carolina, Musk stated that artifi

ING analysts Warren Patterson and Ewa Manthey note Brent has pushed back above $95/bbl as escalating Persian Gulf tensions revive supply risk and a geopolitical premium.

Antje Praefcke at Commerzbank highlights that markets now price nearly a 70% chance of a September Fed hike after Chair Kevin Warsh’s hawkish speech, but stresses upcoming US inflation data will be decisive.

Danske Research Team notes that EUR/USD slipped below 1.1600 as the US Dollar strengthened on a hawkish Federal Reserve stance and geopolitical tensions. The team highlights that Euro area inflation has moved back above 3%, reinforcing expectations for a September ECB rate hike.

The European Central Bank (ECB) Governing Council member Joachim Nagel said on Wednesday that markets see over 95% chance of a September rate hike.

Bank of Japan (BoJ) board member Hajime Takata said on Wednesday that the central bank needs a different response from conventional semi-annual rate hike pace. 

The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is gaining ground for the second successive day and trading around 99.70 during the Asian hours on Wednesday.

AUD/USD inches higher after recovering its daily losses, trading around 0.7150 during the Asian hours on Wednesday.

Bank of Japan (BoJ) board member Hajime Takata said on Wednesday that the central bank must conduct rate hikes nimbly after assessing accommodation in domestic financial conditions and developments.

Australia’s Gross Domestic Product (GDP) rose 0.4% QoQ in the second quarter (Q2) of 2026 compared with the 0.3% growth in the first quarter (Q1), the Australian Bureau of Statistics (ABS) showed on Wednesday. This reading came in stronger than the expectations of 0.3% expansion. 

GBP/USD extends its losses for the second successive day, trading around 1.3510 during the Asian hours on Wednesday.

Bank of Japan (BoJ) Governor Kazuo Ueda on Tuesday held talks with US Treasury Secretary Bessent on the sidelines of the G20, but giving no details on what was discussed.

Japanese Finance Minister (FM) Satsuki Katayama said on Tuesday that debt growth is global trend, Japan outlines fiscal policy targeting growth and sustainability. Katayama added that US Treasury Secretary Bessent referenced US strategies to manage debt. 

The US Central Command (CENTCOM) said it completed a wave of strikes against Iran’s Islamic Revolutionary Guard Corps (IRGC) targets in Iran early on Wednesday, CNBC reported. 

United Overseas Bank (UOB) analysts Quek Ser Leang and Lee Sue Ann discuss recent volatility in USD/CNH after a sharp rebound and subsequent drop.

The Reserve Bank of New Zealand (RBNZ) is on track to deliver a follow-through interest rate hike, raising the Official Cash Rate (OCR) by another 25 basis points (bps) from 2.50% to 2.75% on Wednesday. 

UOB's Jester Koh note they raise their FY27 Gross Domestic Product (GDP) forecast for India to 7.2% from 6.8% after a stronger-than-expected 1QFY27 expansion of 7.8% year-on-year.

OCBC strategists Sim Moh Siong and Christopher Wong have recalibrated Asian FX forecasts slightly firmer against the US Dollar (USD), with more notable upgrades for KRW and MYR.

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann note that USD/SGD has retreated sharply after last week’s spike, but downside momentum remains limited.

Standard Chartered strategists Anubhuti Sahay and Saurav Anand revise their FY27 Gross Domestic Product (GDP) growth forecast to 7.2% from 6.6% following a robust Q1-FY27 print and strong high-frequency indicators.

Rabobank strategists highlight growing pressure on China’s trade model as US-led restrictions target links with Iran and Venezuela.