MUFG’s Derek Halpenny argues that recent USD/JPY moves likely reflect renewed Japanese Ministry of Finance intervention, with the pair dropping nearly three big figures after testing the 158.00 area.

Silver prices (XAG/USD) rose on Wednesday, according to FXStreet data. Silver trades at $76.78 per troy ounce, up 5.42% from the $72.83 it cost on Tuesday.

OCBC strategists Sim Moh Siong and Christopher Wong highlight that the Reserve Bank of Australia’s latest 25 bps hike to 4.35% and a more balanced guidance underpin a constructive Australian Dollar outlook.

According to Axios, the United States and Iran are moving towards a deal to end the conflict.

Rabobank’s FX Strategy team argues that current market pricing for up to three Bank of England hikes over the next year is excessive given a loosening UK labour market and lacklustre growth.

Eurozone Producer Price Index (MoM) above forecasts (3.3%) in March: Actual (3.4%)

Eurozone Producer Price Index (YoY) above expectations (1.8%) in March: Actual (2.1%)

The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is declining after three days of gains and trading around 98.00 during the European hours on Wednesday.

Silver (XAG/USD) rallies on Wednesday to erase the previous two days' losses and reaches session highs above $76.00 at the time of writing, favoured by the US Dollar's weakness.

ING economists Rafal Benecki and Adam Antoniak expect the National Bank of Poland (NBP) to keep policy rates unchanged at 3.75% in coming months, despite higher April Consumer Price Index (CPI) and stronger March activity data.

United Kingdom S&P Global Services PMI above expectations (52) in April: Actual (52.7)

United Kingdom S&P Global Composite PMI registered at 52.6 above expectations (52) in April

Dow Jones futures gain 0.17%, trading near 49,500 during the European hours on Wednesday, ahead of the United States (US) regular opening. Meanwhile, the S&P 500 rise 0.28% to near 7,310, and the Nasdaq 100 futures advance 0.70% above 28,330.

Here is what you need to know on Wednesday, May 6:

Commerzbank's Antje Praefcke expects the the central bank of Sweden, Riksbank to leave its policy rate unchanged at 1.75% while reiterating its readiness to hike if needed.

Italy Retail Sales s.a. (MoM) above forecasts (-0.4%) in March: Actual (0.8%)

Italy Retail Sales n.s.a (YoY) up to 3.7% in March from previous 1.6%

Eurozone HCOB Composite PMI climbed from previous 48.6 to 48.8 in April

Eurozone HCOB Services PMI above expectations (47.4) in April: Actual (47.6)

Hyperliquid (HYPE) is trading above $44.00 at press time on Wednesday, extending an upward trend for the sixth straight day. The exchange token is gaining retail confidence and user interest as HYPE futures Open Interest and Total Value Locked on Hyperliquid rise.

DBS Group Research’s Philip Wee argues that the USD Index (DXY) is at an inflection point, consolidating in a 98–99 range after retracing its post-Operation Epic Fury rally.

Germany HCOB Services PMI meets forecasts (46.9) in April

Germany HCOB Composite PMI came in at 48.4, above expectations (48.3) in April

France HCOB Composite PMI meets forecasts (47.6) in April

France HCOB Services PMI meets expectations (46.5) in April

Rabobank's Senior Market Strategist Benjamin Picton reports the Reserve Bank of Australia (RBA) has delivered a third consecutive 25 bp hike, taking the cash rate to 4.35% and matching the previous cycle high.

USD/CAD extends its losses for the second successive day, trading around 1.3590 during the early European hours on Wednesday. However, the technical analysis of the daily chart indicates the pair is positioned within the descending channel pattern, signaling an ongoing bearish bias.