Eurozone Harmonized Index of Consumer Prices (MoM) meets forecasts (1%) in April

Eurozone Core Harmonized Index of Consumer Prices (MoM) remains unchanged at 0.9% in April

Eurozone Harmonized Index of Consumer Prices (YoY) meets forecasts (3%) in April

Eurozone Core Harmonized Index of Consumer Prices (YoY) meets expectations (2.2%) in April

European Central Bank (ECB) policymaker and the head of Belgium's central bank, Pierre Wunsch, said during the European trading session on Wednesday that the central bank needs to act at some point, as “we are at the beginning of an inflation problem”.

Deutsche Bank analysts report Brent Oil trading above $110 per barrel as the Strait of Hormuz remains constrained, sustaining a tight link between Oil and global yields.

Silver price (XAG) trades 2% higher to near $75.20 during the European trading session on Wednesday. The white metal recovers from its almost two-week low of $73.10 posted the previous day.

The Pound (GBP) is trading practically flat against the Japanese Yen (JPY) on Wednesday, moving halfway through the last three weeks’ trading range, a few pips below 213.00.

Dow Jones futures inch lower 0.08% to near 49,420 after experiencing volatility during European hours ahead of the United States (US) regular opening on Wednesday. Meanwhile, the S&P 500 gain 0.16% to near 7,390, and the Nasdaq 100 futures advance 0.51% toward 29,100.

United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann keep a bearish outlook on AUD/USD after the pair plunged to 0.7080, confirming a break below the 0.7100 support.

United Kingdom DCLG House Price Index (YoY) came in at 0% below forecasts (0.8%) in March

DBS Group Research, via Senior FX Strategist Philip Wee, highlights that the USD Index (DXY) has stayed in a defined range even as the US Treasury 10Y yield climbs above 4.50%.

The USD/CAD pair attracts some dip-buyers on Wednesday and climbs to the 1.3765-1.3770 region during the first half of the European session, back closer to its highest level since April 14, touched the previous day.

South Africa Consumer Price Index (MoM) climbed from previous 0.6% to 1.1% in April

South Africa Consumer Price Index (YoY) above forecasts (3.9%) in April: Actual (4%)

MUFG’s Derek Halpenny highlights growing downside risks for the Japanese Yen as rising US yields and higher Fed hike probabilities support the Dollar.

Here is what you need to know on Wednesday, May 20:

USD/JPY halts its seven-day winning streak, trading around 159.00 during the European hours on Wednesday. The currency pair holds above the nine- and 50-period Exponential Moving Averages (EMAs), keeping a constructive upside bias in place after recovering from last week’s dip.

European Central Bank policymaker and Bank of France nominee Emmanuel Moulin said during the European trading session on Wednesday that it is too soon to say whether the central bank will make any monetary policy adjustment in the June policy meeting.

Commerzbank’s Michael Pfister notes that Canadian inflation surprised to downside on core measures, staying near 2%, helped by Canada’s status as a net energy exporter and a weak labour market. He questions market expectations for two Bank of Canada (BoC) hikes by year-end.

The Euro (EUR) consolidates losses against the US Dollar (USD) on Wednesday, trading at six-week lows around 1.1600 at the time of writing, after retreating from the 1.1660 area on Tuesday.

Deutsche Bank analysts highlight a sharp selloff in US Treasuries, with 30‑year yields reaching post‑2007 highs and 10‑year yields at their highest since early 2025.

The USD/CHF pair attracts some follow-through buyers for the second straight day and retests the three-week top during the early European session on Wednesday. Spot prices now look to build on over one-week-old uptrend further beyond the 0.7900 mark amid a bullish US Dollar (USD).

Indonesia Bank Indonesia Rate above expectations (5%): Actual (5.25%)

West Texas Intermediate (WTI), futures on NYMEX, trade almost 1.5% lower to near $101.80 during the European trading session on Wednesday.

UOB strategists Quek Ser Leang and Lee Sue Ann maintain a negative stance on EUR/USD after the pair broke below 1.1600 and closed lower around 1.1604.

Cardano (ADA) recovers slightly, trading above $0.250 on Wednesday, after posting five straight days of losses since last week. On-chain data shows that whale wallets are accumulating ADA during the recent correction, signaling continued long-term interest in the altcoin.