The Euro (EUR) weakens against the US Dollar (USD) on Wednesday, as ongoing tensions in the Strait of Hormuz offset the impact of the US-Iran ceasefire extension, keeping the Greenback supported.

Russia Producer Price Index (MoM) increased to 2% in March from previous 0.5%

Russia Producer Price Index (YoY) declined to -7.8% in March from previous -5.2%

AUD/USD trades in positive territory on Wednesday, around 0.7160 at the time of writing, up 0.12% on the day.

The USD/JPY climbed near the 159.30 price region on Wednesday, consolidating around recent highs as markets digest fresh developments in the Middle East and shift monetary policy expectations.

GBP/USD holds steady on Wednesday as geopolitical tensions remain high amid the lack of progress toward resuming negotiations between the US and Iran. An absent economic schedule in the US, keeps traders leaning on the latest UK inflation figures, which showed the effects of the energy shock.

EUR/GBP trades on the back foot on Wednesday as UK inflation data lifts the British Pound (GBP), pressuring the Euro (EUR), with the cross extending losses for the second consecutive day. At the time of writing, EUR/GBP is trading around 0.8680, its lowest level since March 31.

Scotiabank strategists Shaun Osborne and Eric Theoret highlight that the Japanese Yen (JPY) is flat against the US Dollar (USD), underperforming G10 peers in subdued trading. USD/JPY price action suggests consolidation in a 157.50–160.50 band, with a flat RSI signaling limited momentum.

Scotiabank strategists Shaun Osborne and Eric Theoret note the Canadian Dollar (CAD) is little changed versus the US Dollar (USD), trading around the midpoint of Tuesday’s range. April’s broader USD decline has largely closed CAD’s valuation gap to fair value near 1.3563.

The US Dollar (USD) is trading practically flat, right above 159.00 against the Japanese Yen (JPY) on Wednesday, consolidating Tuesday’s gains amid cautious markets. Most US Dollar crosses remain moving within previous ranges as the situation in the Middle East deteriorates.

Societe Generale’s Kit Juckes argues EUR/USD is likely to stay range-bound as geopolitical risks and US policy uncertainty offset economic fundamentals. He notes two-year rate differentials point to EUR/USD near 1.14–1.17, while consensus GDP suggests 1.14 is appropriate.

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann observe that USD/JPY climbed to 159.37 as the Dollar strengthened. They see scope for a retest of 159.65, with limited follow-through above that level, and expect a broader 157.55–160.50 range.

The EUR/USD pair trades flat at around 1.1745 during the European trading session on Wednesday. The major currency pair consolidates while the US Dollar (USD) edges lower amid hopes of a prolonged standoff between the United States (US) and Iran.

BNY’s Bob Savage notes that Australia’s Westpac-Melbourne Institute Leading Index has slipped below trend, signaling weaker growth ahead as higher rates and the Middle East energy shock weigh on activity.

GBP/USD trades around 1.3515 on Wednesday, gaining a modest 0.06% at the time of writing, as investors digest the latest inflation figures from the United Kingdom (UK) and assess the outlook for monetary policy on both sides of the Atlantic.

Brown Brothers Harriman’s (BBH) Elias Haddad notes that United Kingdom (UK) inflation remains persistently above target, limiting the Bank of England’s (BoE) ability to ignore the energy shock. However, he argues current BoE rate hike expectations are excessive given estimated economic slack.

Rabobank’s Global Strategist Michael Every highlights mounting European energy and geopolitical pressures, including disrupted Oil flows via Druzhba and potential EU financing for Ukraine.

Silver (XAG/USD) nudges higher on Wednesday, but remains at the lower range of Tuesday’s trading, consolidating below $78.00 and with the previous support area of $78.50 capping upside attempts, for now.

The US Dollar (USD) posts minor losses against the Canadian Dollar (CAD) on Wednesday, and is testing session lows below 1.3650 at the time of writing, following rejection at the 1.3675 area on Tuesday.

ING strategist Francesco Pesole argues that EUR/GBP has limited further downside after slipping below 0.8700, as United Kingdom (UK) political risks and stretched Bank of England (BoE) tightening expectations offset risk-on pressures.

EUR/JPY trades around 187.25 on Wednesday at the time of writing, up a modest 0.05% on the day. The cross remains supported by relative stability in the Euro (EUR) as investors assess the impact of geopolitical tensions and diverging monetary policy expectations between Europe and Japan.

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann note that AUD/USD eased to 0.7152 after recent gains, with price action offering few fresh clues. They expect intraday trading between 0.7125 and 0.7175 and see the pair locked in a 0.7060–0.7210 range over the coming weeks.

Commerzbank’s Tatha Ghose sees a binary Turkish central bank (CBT) decision, with markets split between no change and a 300 bp hike, and stresses that corridor tightening would still be de facto tightening.

The US Dollar (USD) posts moderate losses against the Swiss Franc (CHF) on Wednesday, but remains trading within previous ranges, with price action fluctuating around 0.7800, halfway through the weekly trading band.

The AUD/USD pair trades 0.25% higher to near 0.7170 during the European trading session on Wednesday. The Aussie pair gains as the Australian Dollar (AUD) outperforms its peers amid improved market sentiment.

The Euro (EUR) posts marginal gains against the US Dollar (USD) on Wednesday.  The pair, however, remains near the bottom of the last few days’ trading range, around 1.1750, as hopes of a positive outcome from the US-Iran peace negotiations vanish.US President Trump has extended the ceasefire unilat

AUD/JPY inches higher after remaining flat in the previous session, trading around 114.10 during the Asian hours on Wednesday.

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann highlight that EUR/USD slipped to 1.1742 as the Dollar firmed on stalled US–Iran talks and weaker German sentiment.

The GBP/JPY pair falls to near 215.10 during the European trading session on Wednesday. The pair drops as the Pound Sterling (GBP) faces selling pressure as the United Kingdom (UK) core Consumer Price Index (CPI) data for March arrives lower than estimates.

The USD/JPY pair adds to its modest intraday losses and moves further away from over a one-week high, around the 159.70 region, touched the previous day. Spot prices drop to the 159.00 neighborhood, or a fresh daily low, during the early European session, though the downside potential seems limited.