Standard Chartered’s Bader Al Sarraf and Nicholas Chia note that the Reserve Bank of New Zealand kept the OCR at 2.25% in a split 3-3 decision, with the governor’s casting vote preventing a hike.

The NZD/USD pair catches aggressive bids in reaction to the Reserve Bank of New Zealand's (RBNZ) hawkish on-hold rate decision on Wednesday, reversing the previous day's losses to a nearly one-week low.

Italy Industrial Sales s.a. (MoM) increased to 2% in March from previous 0.6%

Italy Industrial Sales n.s.a. (YoY) climbed from previous 0.5% to 4.4% in March

Austria UniCredit Bank Manufacturing PMI increased to 51.7 in May from previous 51.2

Switzerland ZEW Survey – Expectations: -11.1 (May) vs -30.3

Here is what you need to know on Wednesday, May 27:

Danske Research Team highlights that Brent Oil has eased from a recent high near USD 100.5 per barrel to around USD 98. The move is described as limited, but sufficient to take some pressure off US Treasury yields.

The Euro (EUR) extends its rally against the Japanese Yen (JPY) for the fourth consecutive day on Wednesday, reaching above 185.46 for the first time since an alleged intervention on April 30.

Silver price (XAG/USD) extends its losses for the second successive day, trading around $75.10 per troy ounce during the early European hours on Wednesday.

Rabobank’s Molly Schwartz notes that United States (US) Treasury yields were mostly flat with a slight bull-steepening bias, while the US Dollar Index (DXY) was little changed. She highlights that the US OIS curve still prices a high probability of further rate hikes.

Commerzbank’s Volkmar Baur contrasts the Reserve Bank of Australia (RBA) with the Reserve Bank of New Zealand (RBNZ), noting Australia has already hiked three times and that April Consumer Price Index (CPI), including a monthly fall and lower annual rate, supports a pause.

Cardano (ADA) steadies near $0.240 on Wednesday, continuing its three-consecutive weeks of losses and maintaining a bearish bias so far this week. Bearish derivatives metrics and weakening momentum hint at deeper losses for ADA.

The GBP/JPY cross attracts some dip-buyers following the previous day's modest pullback from the 214.65-214.70 region, or a fresh monthly peak, and sticks to its modest intraday gains through the early European session on Wednesday.

Deutsche Bank analysts note the S&P 500 hit a fresh record, extending its year-to-date gain to nearly 10%, supported by renewed AI enthusiasm and easing fears around the US-Iran situation.

The Aussie Dollar (AUD) is dropping sharply against the New Zealand Dollar (NZD) on Wednesday.

Asian equity markets reflect a mixed performance on Wednesday, while uncertainty surrounding a breakthrough in the United States (US)-Iran negotiations has escalated, following Washington’s attacks on southern Iran.

Minneapolis Federal Reserve (Fed) Bank President Neel Kashkari said in the European trading session on Wednesday that the major concern for the central bank now is higher United States (US) inflation than deteriorating labor market conditions; however, the central bank needs to pay attention to both

Rabobank's Senior FX Strategist Jane Foley highlights that despite resilient Swiss growth and firm PMI readings, very low inflation leaves little need for imminent SNB tightening.

The AUD/JPY cross attracts some sellers to around 113.95 during the early European trading hours on Wednesday. The Australian Dollar (AUD) softens against the Japanese Yen (JPY) as Australian Consumer Prices Index (CPI) inflation rose by less than expected in April. 

France Consumer Confidence registered at 82, below expectations (85) in May

Pi Network (PI) is under intense selling pressure, retracing below $0.1500 at press time on Wednesday. Pi Core Team announces June 2 as the deadline for the mainnet upgrade to the next Stellar protocol version 24. Technical outlook for PI remains bearish as selling pressure builds.

Danske Research Team notes that US equities advanced, with the S&P 500 up 0.6% and the Russell 2000 outperforming with a 1.8% gain. The analysts stress that small caps are unusually strong given a perceived narrow tech-led rally and shifting rate expectations.

The US Dollar (USD) is trading practically flat against the Canadian Dollar (CAD) on Wednesday, consolidating gains above 1.3800 at the time of writing, after having rallied about 1.7% over the previous three weeks.

Volkmar Baur at Commerzbank notes the RBNZ held rates at 2.25% with a hawkish split vote, pushing market odds of a July hike above 70%.

The GBP/USD pair trades cautiously near Tuesday’s low around 1.3450 in the early European trade on Wednesday. The Cable is under pressure as investors turn cautious regarding the longevity of the ceasefire between the United States (US) and Iran, following Washington’s attacks on southern Iran.

The EUR/GBP cross trades with mild gains near 0.8650 during the early European trading hours on Wednesday. Hawkish comments from the European Central Bank (ECB) policymakers provide some support to the Euro (EUR) against the British Pound (GBP).