Germany 10-y Bond Auction climbed from previous 2.83% to 2.85%

EUR/GBP trades without a clear direction on Wednesday, hovering around 0.8690 at the time of writing and virtually unchanged on the day. Trading conditions remain subdued, as a light economic calendar in both the United Kingdom (UK) and the Eurozone encourages investors to remain cautious.

The Swiss Franc is currently threatening to strengthen against the Euro, with potential implications for the SNB's policy. The loss of confidence in US policymaking has heightened fears of currency debasement, boosting the appeal of the CHF as a store of value.

The Bank of Canada (BoC) is widely expected to leave its benchmark rate unchanged at 2.25% at Wednesday’s meeting, extending the pause it signalled back in December.

The report from BNY outlines the rebalancing needs for the Japanese Yen (JPY) following a significant selloff in Japanese government bonds (JGBs). It indicates that while there is a strong need for JPY purchases, market sentiment may remain cautious until after the upcoming election.

The Euro shows moderate losses on Wednesday, retreating to 1.1985 at the time of writing, from over four-year highs at 1.2082 hit on Tuesday.

The EUR/USD pair showed bullish momentum on Tuesday, as short-dated EUR swap rates declined. The stronger euro poses a risk to the ECB's inflation targets, prompting concerns among policymakers.

The US Dollar regains lost ground heading into the Federal Reserve’s (Fed) monetary policy decision on Wednesday.

USD/CAD moves little after registering nearly 1% losses in the previous session, trading around 1.3570 during the European hours on Wednesday.

Switzerland ZEW Survey – Expectations dipped from previous 6.2 to -4.7 in January

The GBP/JPY cross extends its sideways consolidative price move for the second straight day and trades below the 211.00 mark during the early European session on Wednesday.

Sterling remains firm, holding just under its recent high as UK shop prices rise, according to Scotiabank's Daily FX Update by Shaun Osborne and Eric Theoret. The report notes that markets are not pricing in further Bank of England easing until mid-year, reflecting a shift in easing risk.

The EUR/JPY cross loses ground to near 182.90 during the early European session on Wednesday. The Japanese Yen (JPY) edges higher against the Euro (EUR) amid hawkish Bank of Japan (BoJ) December meeting minutes, which showed that members agreed on the need to continue raising interest rates. 

The USD/CAD pair gains some positive traction during the Asian session on Wednesday and reverses a part of the overnight slump to the 1.3560-1.3555 region, or its lowest level since July 2025.

GBP/USD depreciates after four days of gains, trading around 1.3800 during the Asian hours on Friday. The technical analysis of the daily chart suggests a potential bearish reversal amid a narrowing range, suggesting buyers are losing strength within the rising wedge pattern.

The EUR/USD pair attracts some sellers to near 1.1990, snapping the four-day winning streak during the early European session on Wednesday. The major pair retraces from a five-year high amid renewed US Dollar (USD) demand.

The USD/INR pair inches higher after registering 0.25% losses in the previous session. The pair rebounds toward its all-time high of 91.96, reached on January 23, as the US Dollar (USD) gains amid caution ahead of the Federal Reserve (Fed) policy decision.

The Japanese Yen (JPY) drifts lower during the Asian session on Wednesday amid concerns about Japan's fiscal health on the back of Prime Minister Sanae Takaichi's aggressive spending and tax cut plans.

NZD/USD halts its winning streak that began on January 16, trading around 0.6010 during the Asian hours on Wednesday. The pair edges lower as the US Dollar (USD) rebounds after registering over 1% losses in the previous session, as traders position ahead of the Federal Reserve (Fed) policy decision.

Silver price (XAG/USD) surges to near $113.50 during the Asian session on Wednesday. The rally of the white metal is bolstered by economic and geopolitical risks, and interest rate cut expectations. The US Federal Reserve (Fed) interest rate decision will be in the spotlight later on Wednesday.

The Australian Dollar (AUD) edges lower against the US Dollar (USD) on Wednesday after registering over 1% gains in the previous session.

On Wednesday, the People’s Bank of China (PBOC) sets the USD/CNY central rate for the trading session ahead at 6.9755 compared to the previous day's fix of 6.9858 and 6.9231 Reuters estimate.

The AUD/JPY cross builds on the overnight bounce from the vicinity of the 106.00 mark, or a nearly one-week low, and attracts buyers for the second day on Wednesday.

GBP/USD is well on its way to a second straight week of strong gains as the US Dollar (USD) gives up the ghost on the back of ongoing trade war rhetoric undercutting the Greenback’s strength.

The USD/JPY pair slumps to over three-month lows near 152.30 during the early Asian session on Wednesday. The Japanese Yen (JPY) strengthens against the US Dollar (USD) on speculation about a possible coordinated intervention by Japanese and US authorities.

EUR/USD skyrockets to a new five-year high of 1.2082 on Tuesday after US President Donald Trump expressed that he does not think the Dollar has fallen too much, triggering a sell-off of the Greenback, which is down so far over 1.31% in the day.

The AUD/JPY halts its downtrend and trades flat during Tuesday’s US session after posting back-to-back bearish daily candles, on speculation of intervention in the FX markets to boost the Japanese Yen.

Australia will release the Consumer Price Index (CPI) report on Wednesday, and it is expected to show inflation rose 3.6% year over year in December, slightly above the previous reading of 3.4%. The monthly CPI is foreseen at 0.7% after posting 0% in November.

The Canadian Dollar (CAD) caught a sharp rise against the US Dollar (USD) on Tuesday despite being an overwhelmingly low performer across global markets.

MUFG's analysis indicates that the Indian Rupee (INR) is likely to face challenges due to rising money market rates and a scarcity of capital inflows.