BNY’s Geoff Yu notes Brazilian portfolio inflows are near post-COVID highs ahead of the Selic decision, with strong demand for equities and government bonds.

EUR/USD trades modestly higher on Wednesday as weaker-than-expected US labour market data and easing energy-driven inflation risks temper Federal Reserve (Fed) rate-hike expectations and weigh on the US Dollar (USD).

TD Securities strategists see the recent intervention-driven USD/JPY decline as cyclical rather than regime-changing. They expect December as the more likely timing for the next Bank of Japan (BoJ) hike and doubt sustained joint US‑Japan intervention support.

Reuters’ latest poll of foreign exchange strategists shows a modest downward revision in Euro (EUR) forecasts while highlighting persistent market skepticism over the effectiveness of Japanese currency intervention.

Brown Brothers Harriman’s (BBH) Elias Haddad reports USD/INR is firmer after recently testing a one‑month low, following the Reserve Bank of India’s (RBI) unanimous decision to keep its policy rate at 5.25% and maintain a neutral bias.

Commerzbank’s Norman Liebke notes that markets expect a further 25 bps cut from the Brazilian Central Bank (BCB), but real rates would remain highly restrictive near 9.4%.

USD/CAD trades around 1.4040 on Wednesday at the time of writing, down 0.14% on the day, as the Canadian Dollar (CAD) benefits from a rebound in Oil prices.

USD/JPY trades under modest pressure on Wednesday as easing tensions in the Middle East and weaker US labour market data weigh on the US Dollar (USD). At the time of writing, the pair trades around 157.45, down 0.20% on the day.

TD Securities reviews New Zealand’s Q2 labour report, noting unemployment rose to 5.6%, an 11‑year high, partly on higher participation, while employment still grew 0.5% quarter‑on‑quarter. Private-sector wages slightly beat consensus and the RBNZ’s May forecast.

Societe Generale’s Kit Juckes, drawing on Scott Bessent’s perspective, argues that recent coordinated US-Japan action in the Japanese Yen is part of a broader US trade strategy.

The Euro (EUR) trades 0.15% higher at around 1.1550 against the US Dollar (USD) during the European trading session on Wednesday. The major currency pair gains as the US Dollar faces selling pressure ahead of a busy North American session.

Silver (XAG/USD) has found some resistance at the $61.90 area on Wednesday, before pulling back to $61.24 at the moment of writing, but remains above the top of the last four weeks’ range, at the $60.90 area.

The British Pound (GBP) extends gains for the second consecutive day against the Japanese Yen (JPY) on Wednesday, with the GBP/JPY pair holding around 212.30 after bouncing from five-month lows at 209.55 on Monday.

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann describe USD/JPY price action as muted, with the pair confined to 157.15–157.95 and momentum turning flat. They expect intraday range trading between 157.00 and 158.30.

NZD/USD declines to around 0.5860 on Wednesday at the time of writing, down 0.54% on the day, following the release of weaker-than-expected New Zealand employment data. The New Zealand Dollar (USD) comes under selling pressure as investors reassess the outlook for monetary policy.

The GBP/USD pair gains follow-through positive traction for the second straight day and sticks to modest intraday gains through the first half of the European session on Wednesday.

The Australian Dollar (AUD) trades flat against the US Dollar (USD) at around 0.7050 during the European trading session on Wednesday. The Aussie pair struggles for a direction as investors await the United States (US) ADP Employment Change data for July, which will be published at 12:15 GMT.

BNY’s Geoff Yu argues that coordinated intervention has not significantly increased foreign exposure to the Japanese Yen (JPY), with investors still net long JPY but at much lower levels than in H1 2026.

The Euro (EUR) holds marginal gains against the US Dollar (USD) on Wednesday, with the EUR/USD pair consolidating around the 1.1530 area, a few pips below seven-week highs at 1.1558.

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann notes AUD/USD rebounded strongly to close at 0.7047 after an overdone retreat, with short‑term momentum building.

EUR/JPY holds ground after registering over 0.5% gains in the previous day, trading around 182.00 during the European hours on Wednesday.

The USD/CHF pair reverses a modest intraday dip and touches a fresh daily high during the early European session on Wednesday, though it remains below the 0.8100 mark.

The Japanese Yen (JPY) gives back its early gains and flattens at around 157.70 against the US Dollar (USD) during the European trading session on Wednesday.

The US Dollar (USD) appreciates for the fourth consecutive day against a weaker Canadian Dollar (CAD) on Wednesday, with the USD/CAD pair pushing against weekly highs at 1.4080 at the time of writing.

Rabobank’s Brazil weekly notes that the Brazilian Real (BRL) recently appreciated to BRL 5.0587 per Dollar, ranking among the top emerging-market performers.

The British Pound (GBP) claws back its early losses against the Japanese Yen (JPY) and edges higher to near 212.25 during the European trading session on Wednesday.

Commerzbank’s Thu Lan Nguyen argues that the recent historic intervention in USD/JPY, powered by US Treasury participation, may not secure a lasting Japanese Yen (JPY) recovery.

Here is what you need to know on Wednesday, August 5:

The GBP/USD pair posts modest gains near 1.3455 during the early European session on Wednesday, bolstered by softer US economic data and cooling US-Iran tensions. Traders brace for the US ADP Employment and ISM Services Purchasing Manager Index (PMI) reports, which are due on Wednesday.

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann highlights that EUR/USD firmed to 1.1529, with short‑term momentum turning slightly higher. They see scope for the Euro to edge up but doubt an intraday break of 1.1565, with 1.1545 as nearer resistance and 1.1515/1.1500 as supports.