USD/JPY extends gains on Wednesday as the Japanese Yen (JPY) remains under pressure amid concerns over Oil supply disruptions linked to the US-Iran war, as Japan relies heavily on imported energy, particularly from the Middle East.

NZD/USD trades lower on Wednesday, hovering around 0.5910 at the time of writing and down 0.38% on the day. The Kiwi remains under pressure as investors stay cautious amid persistent risk aversion in global markets, driven by escalating geopolitical tensions in the Middle East.

The Pound Sterling remains firm during the North American session, even though the Middle East conflict entered its twelfth day of hostilities. Inflation in the US boosted the Greenback’s prospects, yet GBP/USD trades at around 1.3400, virtually unchanged.

EUR/GBP remains under pressure on Wednesday, with the Euro (EUR) extending its decline against the British Pound (GBP) for a fifth consecutive day as traders reassess the monetary policy outlook for the European Central Bank (ECB) and the Bank of England (BoE) amid rising concerns about an Oil-drive

ABN AMRO economists argue that elevated Oil and gas prices from the Iran conflict would hurt Eurozone growth more than US growth, mainly via real income and confidence.

ING’s Francesco Pesole notes EUR/GBP has fallen about 1.5% since the Iran conflict began, helped by a stronger GBP rate profile and resilient equities.

Scotiabank strategists Shaun Osborne and Eric Theoret note the Canadian Dollar is steady against the Dollar, extending a consolidation phase as narrowing interest rate differentials and higher Oil prices support further CAD strength.

The Euro (EUR) weakens against the US Dollar on Wednesday as the Greenback strengthens after US inflation data came broadly in line with forecasts. At the time of writing, EUR/USD is trading around 1.1587, extending losses for the second straight day.

AUD/USD trades around 0.7150 on Wednesday at the time of writing, up 0.42% on the day and extending its winning streak for a fourth consecutive day. The Australian Dollar (AUD) remains supported by growing expectations of monetary tightening from the Reserve Bank of Australia (RBA).

Rabobank’s FX Strategy team expects EUR/USD to remain volatile as higher Oil and food prices stoke inflation concerns and support the Dollar’s safe haven appeal.

Brazil Retail Sales (MoM) came in at 0.4%, above forecasts (-0.1%) in January

Societe Generale analysts describe EUR/USD as quiet within its recent range, with spot capped by the 200‑day moving average at 1.1676 ahead of US CPI. They flag support at 1.1560 and resistance at 1.1735, alongside sizeable nearby option expiries.

Germany 10-y Bond Auction climbed from previous 2.73% to 2.89%

Commerzbank’s Antje Praefcke expects Swedish inflation to stay below target and sees little chance of a near-term Riksbank cut.

Societe Generale analysts highlight that AUD/USD has broken out of consolidation and is in a steady uptrend, supported by its 50‑DMA. The bank notes bullish momentum with a potential return towards 0.72 and upside targets at 0.7220/0.7250 and 0.7400.

ING’s Francesco Pesole highlights that hawkish comments from ECB officials, including President Lagarde and Peter Kazimir, have reinforced market pricing for a rate hike within six months, though ING still sees this as a lower-probability scenario.

Silver price (XAG/USD) remains flat after experiencing modest volatility, trading around $87.20 per troy ounce during the European hours on Wednesday. The safe-haven Silver may lose ground amid optimism that the Middle East conflict may have a smaller impact on inflation than initially feared.

USD/JPY gains ground for the second successive session, trading around 158.30 during the European hours on Wednesday. The pair appreciates as the Japanese Yen (JPY) struggles due to uncertainty surrounding the Bank of Japan (BoJ) policy outlook.

ING’s Francesco Pesole points out the Canadian Dollar is the best-performing G10 currency since the conflict started, supported by resilient equities and Canada’s energy exporter status.

Here is what you need to know on Wednesday, March 11:

GBP/USD gains ground after registering little losses in the previous session, trading around 1.3450 during the Asian hours on Wednesday. The Pound Sterling (GBP) strengthens against its peers amid optimism that the Middle East conflict may have a smaller impact on inflation than initially feared.

The USD/CAD pair sticks to its modest intraday losses through the early European session on Wednesday and currently trades just above mid-1.3500s, down nearly 0.15% for the day. Spot prices, meanwhile, remain close to a nearly one-month low, touched on Monday, and seem vulnerable to slide further.

Germany Harmonized Index of Consumer Prices (YoY) meets forecasts (2%) in February

Germany Consumer Price Index (YoY) remains unchanged at 1.9% in February

Germany Consumer Price Index (MoM) in line with expectations (0.2%) in February

Germany Harmonized Index of Consumer Prices (MoM) meets forecasts (0.4%) in February

The USD/CHF pair loses ground to near 0.7765 during the early European trading hours on Wednesday. Ongoing Middle East tensions continue to boost a safe-haven currency such as the Swiss Franc (CHF) against the US Dollar (USD).

The AUD/USD pair extends the rally to around 0.7170 during the early European trading hours on Wednesday. The Australian Dollar (AUD) rises to near a three-year high against the Greenback amid hawkish expectations of the Reserve Bank of Australia (RBA). 

The EUR/JPY cross gains ground to near 183.90 during the early European session on Wednesday. The Japanese Yen (JPY) softens against the Euro (EUR) amid market doubt about the speed of the Bank of Japan (BoJ) normalization.

The AUD/JPY cross gains strong positive traction for the fourth consecutive day and continues scaling new all-time tops through the Asian session on Wednesday. Spot prices currently trade around mid-113.00s, up 0.90% for the day, and seem poised to prolong the recent well-established uptrend.