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.

The US Dollar (USD) maintains its positive performance for the third consecutive day on Wednesday, this time lifting the US Dollar Index (DXY) to the vicinity of two-month highs near 99.50 and opening the door to a potential test of the psychological 100.00 hurdle in the relatively short term.

NZD/USD falls to around 0.5870 on Wednesday at the time of writing, down 0.97% on the day. The pair extends its bearish move for a third consecutive day as investors favor the US Dollar (USD) amid escalating geopolitical tensions in the Middle East.

The USD/JPY pair is trading just below the 160.00 price level on Wednesday, as the US Dollar (USD) remains supported by stronger-than-expected economic data, while the Japanese Yen (JPY) struggles to attract sustained demand amid a cautious market mood.

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.

EUR/USD ticks lower on Wednesday after closing the previous day virtually unchanged. The Euro (EUR) weakens as stronger-than-expected US economic data boosts demand for the US Dollar (USD), while renewed tensions in the Middle East further support the Greenback.

The Pound Sterling drops by 0.28% during the North American session as the US and Iran exchange attacks, while data in the US revealed that the labour market remains solid and that business activity expanded but is slowing.

Scotiabank strategists Shaun Osborne and Eric Theoret highlight that the British Pound (GBP) is trading fractionally lower against the Dollar, with limited fresh data beyond a slightly contractionary services PMI.

Brown Brothers Harriman’s (BBH) Elias Haddad reports that USD/JPY’s test of 160.00 has heightened intervention risks, with Japanese authorities already having spent a record amount to cap the pair near that level.

Gold has become the top reserve asset in global central banks’ vaults, surpassing US Treasuries, suggesting that the precious metal is becoming the main choice for monetary authorities seeking protection against geopolitical uncertainty.

BNY’s Bob Savage reports that the Dollar Index is firmer as higher U.S. yields and renewed geopolitical tensions underpin safe-haven demand. President Trump’s proposal for broad new tariffs raises trade and inflation risks, reinforcing USD support.

AUD/USD trades around 0.7145 on Wednesday at the time of writing, down 0.50% on the day. The pair remains under pressure after the release of several disappointing Australian economic indicators, while solid US data continues to support the US Dollar (USD).

Scotiabank strategists Shaun Osborne and Eric Theoret note the Canadian Dollar (CAD) remains soft but broadly stable, with USD/CAD trading near 1.3850.

United States EIA Crude Oil Stocks Change came in at -7.974M, below expectations (-4M) in May 29

MUFG’s Derek Halpenny notes that recent Ministry of Finance (MoF) and Bank of Japan (BoJ) intervention failed to prevent USD/JPY from returning to 160, as higher US yields and renewed Middle East tensions support the Dollar.

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.

USD/CHF extends its advance on Wednesday as ongoing tensions in the Middle East and stronger-than-expected US labor data lift the US Dollar (USD). At the time of writing, the pair is trading around 0.7900, staying on the front foot for a third straight day.

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.

TD Securities’ Ryan McKay notes that Gold is struggling to recover as renewed tariffs and US-Iran tensions fuel an inflationary impulse and push expectations for a Federal Reserve (Fed) hike into early 2027.

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