The Mexican Peso finishes its winning streak yet holds firm at around Wednesday’s opening price against the US Dollar, after the minutes of the Federal Reserve’s last meeting revealed that officials expect another rate hike by the year’s end. The USD/MXN trades at 17.98, virtually unchanged.

The low of every session since September 24 has come within half a cent of 1.3200, and Wednesday made it ten in a row. GBP/USD trades just above 1.3200, below the level Tuesday's rally started from.

The US Dollar (USD) has resumed its uptrend, advancing to two-day highs while rapidly forgetting Tuesday’s hiccup. The extra gains in the Greenback have come in tandem with the equally decent advance in US Treasury yields on the belly and the long end of the curve.

The Pound Sterling dives over 0.48% against the US Dollar as US Treasury yields hit a 24-year high, boosting the Greenback’s appeal, while traders await the release of the Federal Reserve’s last meeting minutes. The GBP/USD trades at 1.3210 after peaking near 1.3276.

USD/JPY trades in a narrow range on Wednesday, with the Japanese Yen (JPY) holding a slight advantage over the US Dollar (USD) as traders assess hawkish Bank of Japan (BoJ) signals. Intervention risks near the 160.00 level also keep traders cautious.

EUR/USD extends its decline on Wednesday as the Euro (EUR) remains under broad selling pressure, while the US Dollar (USD) strengthens alongside surging US Treasury yields. At the time of writing, the pair trades around 1.1195, down 0.57% on the day, hovering near its lowest level in 17 months.

AUD/USD falls 0.44% on Wednesday and trades around 0.6950 at the time of writing, snapping a three-day winning streak.

Scotiabank strategists Shaun Osborne and Eric Theoret note USD/CAD around 1.4227 with the Canadian Dollar (CAD) flat versus the US Dollar (USD) but outperforming most G10 peers. CAD retains much of Tuesday’s 0.4% gain, helped by a stronger August trade balance.

USD/CAD rebounds sharply on Wednesday, rising nearly 0.45% as the US Dollar (USD) remains firmly bid across the board, supported by surging US Treasury yields. Attention now turns to the minutes of the Federal Reserve’s (Fed) September monetary policy meeting, due at 18:00 GMT.

BNY’s Geoff Yu argues that the Eurozone recovery remains intact even as the Euro (EUR) weakens. Manufacturing PMIs and business surveys in Germany and across Europe point to strengthening demand, while fiscal stress and a softer European Central Bank (ECB) stance weigh on the currency.

Rabobank’s Senior FX Strategist Jane Foley reviews the sharp USD/JPY declines in July and September, initially driven by joint Ministry of Finance (MoF)–US Treasury intervention and later without official action. The report notes that the Bank of Japan’s gradual rate hikes are eroding the Japanese Yen’s appeal as a funding currency for carry trades, even though recent price action has reduced urgency around finding alternatives.

ING’s Deepali Bhargava notes that the Reserve Bank of India delivered its first rate hike in four years, raising the policy Repo rate to 5.50% and shifting to calibrated tightening.

EUR/GBP trims part of its intraday decline on Wednesday but remains on the back foot for the ninth consecutive day as concerns over France’s fiscal position weigh on the Euro (EUR).

DBS Group Research economist Chang Wei Liang notes that the Japanese Yen (JPY) could trade slightly weaker as the government reportedly considers a second supplementary budget, with USD/JPY around mid-158.

Silver (XAG/USD) dives on Wednesday, nearing two-month lows around the $60.00 psychological area after rejection from levels near $62.00 on Tuesday.

Brown Brothers Harriman’s (BBH) Elias Haddad notes that the Reserve Bank of India’s (RBI) 25 bps rate hike to 5.50% failed to support the Indian Rupee.

The Euro (EUR) comes under pressure against its peers again on Wednesday after a relief recovery the previous day. In the European trade, the major currency is down 0.63% at around 1.1188 against the US Dollar.

The Swiss Franc (CHF) loses ground for the third consecutive day against the US Dollar (USD) on Wednesday, retracing the rebound witnessed late last week.

MUFG’s Derek Halpenny highlights growing downside risks for the Japanese Yen versus the US Dollar as USD/JPY tests its 200-day moving average near 158.50.

Halpenny argues that last week’s sharp widening of the OAT/Bund spread to 150 bps looked overdone, with French bonds now retracing from oversold levels as global fixed income selling eases. He sees Marine Le Pen’s aggressive consolidation plan as unlikely to materially change OAT risk ahead of next year’s election. MUFG expects EUR/USD downside risks to prevail.

The Euro (EUR) underperforms its major currency peers on Wednesday, trading almost 0.55% lower at around 177.00 against the Japanese Yen (JPY) in the European trade.

The GBP/USD pair weakens further below mid-1.3200s during the first half of the European session on Wednesday, eroding a major part of the previous day's move higher amid a broadly firmer US Dollar (USD).

The Japanese Yen (JPY) holds marginal gains against the US Dollar (USD) on Wednesday.

United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann note that USD/JPY traded on a firm footing in early Asian trade as upward momentum continued to build.

NZD/USD depreciates after registering modest gains the previous day, trading around 0.5610 during the European hours on Wednesday.

The AUD/USD pair attracts some sellers on Wednesday, stalling a three-day recovery move from the 0.6900 neighborhood, or a three-month low, touched last week.

The Euro (EUR) extends losses against the British Pound (GBP) on Wednesday, on track to complete a nearly 1.6% decline in a nine-day losing streak.

Commerzbank’s Antje Praefcke notes that concerns over France’s national debt have recently weighed on the Euro, reviving memories of the earlier sovereign debt crisis.

The USD/CAD pair gathers strength to around 1.4220 during the early European trading hours on Wednesday. All eyes will be on the Minutes of the Federal Open Market Committee (FOMC) later in the day for signals on a potential rate hike.

MUFG’s Michael Wan highlights that USD/JPY is still trading above 158, but Governor Ueda’s comments point to further Bank of Japan (BoJ) policy normalisation. Ueda stressed anchoring inflation around 2% and noted upside risks from imports, AI demand and JPY weakness.