The German IFO Institute Business Climate Index improves to 85.6 in June, as expected, from 85.0 in May, revised higher from 84.9.

Deutsche Bank strategists note that United States (US) equities experienced a classic risk-off session, with major indexes pressured by a sharp sell-off in chipmakers. The NASDAQ dropped more than the S&P 500 as semiconductor weakness dragged broader benchmarks lower.

Commerzbank notes USD/SGD rose 0.3% to 1.2970 and has been grinding higher since mid-June on broader Dollar strength.

Danske Research Team notes that the US Dollar (USD) strengthened across G10, driving EUR/USD below 1.1400. The move came alongside a broader risk-off tone, with equities lower, VIX higher and Oil prices retreating.

USD/IDR gains ground for the third successive day, trading around 17,980 during the Asian hours on Wednesday. The pair appreciates as the US Dollar (USD) strengthens on expectations of further Fed tightening.

In a speech prepared by Bank of Japan (BoJ) Governor Kazuo Ueda and read out by Deputy Governor Ryozo Himino during the European trading session on Wednesday, Ueda stated that the monetary policy path will remain on the upside, citing risks to inflation overshooting the 2% target.

Reserve Bank of Australia (RBA) Deputy Governor Andrew Hauser said that the central bank still has work to do to reduce inflation, which remains far too high, Reuters reported on Wednesday.

Danske Research Team reports a sharp global equity selloff led by a more than 4% drop in tech, even as several defensive sectors finished higher.

AUD/JPY remains steady after six days of losses, trading around 0.6920 during the Asian hours on Wednesday. The currency cross moves little as the Australian Dollar (AUD) experiences minor volatility following the release of Australia’s Consumer Price Index (CPI) data.

GBP/USD extends its gains for the second successive day, trading around 1.3200 during the Asian hours on Wednesday. The currency pair depreciated as the US Dollar (USD) gained momentum, driven by a combination of robust domestic economic data and a complex, mixed geopolitical landscape.

The Bank of Japan (BoJ) published the Summary of Opinions from the June monetary policy meeting, with the key findings noted below.   

Japan Corporate Service Price Index (YoY) rose from previous 3% to 3.3% in May

Argentina Gross Domestic Product (YoY) came in at 2.3%, above expectations (1.7%) in 1Q

Commerzbank highlights strong South Korean export momentum, led by semiconductors and petroleum, but notes that South Korean Won (KRW) remains one of Asia’s weakest currencies versus the Dollar.

DBS economist Radhika Rao reports that India and US are close to formalising an interim trade agreement under a new framework first agreed in February.

United States 2-Year Note Auction: 4.189% vs 4.071%

TD Securities strategist Prashant Newnaha notes that softer S&P Australia Flash Composite PMI data, including weaker new orders and moderating price pressures, supports the Reserve Bank of Australia keeping its cash rate unchanged at 4.35% in August.

Nomura strategists note Euro area business activity stayed in contraction in June, with the composite PMI at 49.5 despite a small rise.

Bank of England (BoE) policymaker Alan Taylor said on Tuesday that keeping interest rates on hold for an extended period remains the most appropriate policy response, according to the text of a speech due to be delivered at an event hosted by Barclays and the Center for Economic Policy Research.

United States Richmond Fed Manufacturing Index came in at 4 below forecasts (9) in June

Bank of Canada (BoC) Governor Tiff Macklem said on Tuesday that global imbalances are increasing and may risk financial stability.

United States S&P Global Manufacturing PMI above expectations (54.8) in June: Actual (55.7)

United States S&P Global Composite PMI up to 52.2 in June from previous 51.5

United States S&P Global Services PMI came in at 51.3, above forecasts (51) in June

National Bank of Canada (NBC) Economics and Strategy team, led by Taylor Schleich, Ethan Currie and Vy Le, argues that Kevin Warsh’s Federal Reserve (Fed) is deliberately increasing policy ambiguity by stripping out forward guidance.

United States Redbook Index (YoY) up to 10% in June 19 from previous 9.4%

Geoff Yu at BNY highlights that Eurozone PMIs remain weak despite a slightly better-than-expected composite reading. Core economies like Germany and France continue to underperform, with German services at a 43‑month low.

Private-sector hiring in the US has increased in early June. According to the NER Pulse, the weekly companion to the ADP National Employment Report, companies added an average of 30.75K jobs per week in the four weeks ending June 6.

United States ADP Employment Change 4-week average: 30.75K (May 30) vs 25.5K

Mexico Retail Sales (YoY) up to 4.4% in April from previous 2.9%