United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann keep a constructive stance on USD/SGD after five consecutive daily gains, noting overbought conditions but still expecting further upside. In the near term, they see scope for a test of 1.2980 while 1.3000 caps.

US Treasury yields fell across the curve following the reopening of the Strait of Hormuz, which eased inflationary pressures and drove Oil prices lower.

Lloyd Chan at MUFG argues that Thai Baht (THB) weakness, despite lower Oil prices, reflects its low-yield profile and the Bank of Thailand’s (BoT) growth-focused stance, which limits tightening scope.

Standard Chartered’s Saabir Salad emphasizes that subdued inflation, aided by a strong Hungarian Forint (HUF) and government measures, has allowed the National Bank of Hungary (NBH) to turn more dovish.

United States 5-Year Note Auction: 4.2% vs 4.182%

European Central Bank (ECB) Executive Board member Isabel Schnabel said on Wednesday that from the present perspective, further interest rate hikes are needed to bring inflation back to the central bank’s 2% target.

MUFG’s Lloyd Chan notes that MYR has underperformed since the June FOMC as higher US yields and wider US-Malaysia rate differentials weigh on the currency.

Russia Industrial Output came in at -0.7%, below expectations (1.6%) in May

ABN AMRO economists Bill Diviney and Larissa de Barros Fritz assess the economic and market implications of UK Prime Minister Starmer’s resignation and the likely succession of Andy Burnham.

Commerzbank’s Dr. Ralph Solveen notes that Germany’s Ifo Business Climate Index rose slightly in June, mainly on a better assessment of current conditions rather than expectations.

United States New Home Sales (MoM) came in at 0.58M below forecasts (0.64M) in May

United States New Home Sales (MoM) above forecasts (0.64M) in May: Actual (580M)

Lloyd Chan at MUFG views Singapore Dollar (SGD) as relatively defensive versus other ASEAN currencies thanks to Monetary Authority of Singapore's (MAS) tight Singapore Dollar Nominal Effective Exchange Rate (S$NEER) policy, which anchors volatility and inflation expectations.

ING’s Warren Patterson and Ewa Manthey report that Aluminium led a broad metals sell-off triggered by a sharp global equity decline and a more hawkish Federal Reserve outlook.

United States Current Account came in at $-226.8B below forecasts ($-217.5B) in 1Q

Mexico 1st half-month Inflation came in at -0.11%, below expectations (0.1%) in June

Mexico 1st half-month Core Inflation came in at 0.19% below forecasts (0.2%) in June

MUFG’s Lloyd Chan notes that Indonesian Rupiah (IDR) has been supported by Bank Indonesia’s proactive tightening and FX measures, but elevated US yields and domestic policy uncertainty are testing this buffer.

United States MBA Mortgage Applications: 1% (June 19) vs -3.8%

The comments from Swiss National Bank (SNB) policymaker Petra Tschudin released during the European trading session on Wednesday indicate that medium-term inflation pressures remain unchanged and the central bank is ready to intervene in the FX market if necessary.

Discussions on the future of the Strait of Hormuz could soon gain momentum. According to Reuters, Qatar's Prime Minister is in Muscat on Wednesday to initiate, alongside Oman, a dialogue process involving Iran, the Gulf states and Iraq on the reopening and future operation of the strategic waterway.

Standard Chartered’s Saabir Salad notes that the National Bank of Hungary (MNB) cut the base rate by 25 bps to 6.00%, in line with expectations, and delivered notably dovish forward guidance.

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.