Germany 10-y Bond Auction: 3.16% vs 3.08%

The AUD/USD pair attracts some buyers following an intraday dip to the 0.7085 region on Wednesday and moves away from its lowest level since April 14, touched the previous day.

Eurozone Harmonized Index of Consumer Prices (MoM) meets forecasts (1%) in April

Eurozone Core Harmonized Index of Consumer Prices (MoM) remains unchanged at 0.9% in April

Eurozone Harmonized Index of Consumer Prices (YoY) meets forecasts (3%) in April

Eurozone Core Harmonized Index of Consumer Prices (YoY) meets expectations (2.2%) in April

The Pound (GBP) is trading practically flat against the Japanese Yen (JPY) on Wednesday, moving halfway through the last three weeks’ trading range, a few pips below 213.00.

United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann keep a bearish outlook on AUD/USD after the pair plunged to 0.7080, confirming a break below the 0.7100 support.

The USD/CAD pair attracts some dip-buyers on Wednesday and climbs to the 1.3765-1.3770 region during the first half of the European session, back closer to its highest level since April 14, touched the previous day.

Here is what you need to know on Wednesday, May 20:

USD/JPY halts its seven-day winning streak, trading around 159.00 during the European hours on Wednesday. The currency pair holds above the nine- and 50-period Exponential Moving Averages (EMAs), keeping a constructive upside bias in place after recovering from last week’s dip.

The Euro (EUR) consolidates losses against the US Dollar (USD) on Wednesday, trading at six-week lows around 1.1600 at the time of writing, after retreating from the 1.1660 area on Tuesday.

The USD/CHF pair attracts some follow-through buyers for the second straight day and retests the three-week top during the early European session on Wednesday. Spot prices now look to build on over one-week-old uptrend further beyond the 0.7900 mark amid a bullish US Dollar (USD).

DBS Group Research economists Radhika Rao and Philip Wee assess how the recent surge in global crude prices and an exogenous energy shock are affecting India’s macro backdrop and the Rupee.

The British Pound (GBP) faces selling pressure against its major currency peers, sliding to near 1.3375, during the European trading session on Wednesday.

The USD/JPY pair trades in negative territory around 158.95 during the early European trading hours on Wednesday.

USD/CAD remains stronger for the second successive day, trading around 1.3760 during the Asian hours on Wednesday. The pair appreciates as the commodity-linked Canadian Dollar (CAD) faces challenges due to a slight decline in oil prices.

The Indian Rupee (INR) continues to underperform against the US Dollar (USD) on Wednesday, trading close to its fresh all-time lows. The USD/INR pair holds onto gains near 97.00 as elevated oil prices due to fears of a prolonged closure of the Strait of Hormuz remain a key drag on the Indian Rupee.

The AUD/USD pair remains on the defensive through the Asian session on Wednesday and currently trades around the 0.7100 mark, just above its lowest level since April 14, touched the previous day.

The AUD/JPY cross loses traction to around 112.90 during the early European session on Wednesday. Japan's stronger-than-expected Gross Domestic Product (GDP) growth data for the first quarter (Q1) underpins the Japanese Yen (JPY) against the Australian Dollar (AUD). 

Silver price (XAG/USD) remains flat after registering 5.18% losses in the previous day, hovering around $73.70 per troy ounce during the Asian hours on Wednesday.

The GBP/JPY cross remains depressed for the second consecutive day on Wednesday, though it lacks follow-through selling and holds above the previous day's swing low.

USD/CHF extends its gains for the second successive day, trading around 0.7890 during the Asian hours on Wednesday. The pair remains stronger as safe-haven demand supports the US Dollar (USD).

EUR/JPY loses ground for the second successive day, trading around 184.30 during the Asian hours on Wednesday. The technical analysis of the daily chart indicates the currency cross is remaining slightly below the upper boundary of an emerging descending wedge pattern.

The EUR/USD pair trades vulnerably near the two-month low of 1.1596, posted on Tuesday, during the Asian trading session on Wednesday.

The NZD/USD pair declines to around 0.5820 during the Asian trading hours on Wednesday. The US Dollar (USD) strengthens against the New Zealand Dollar (NZD) on rising tensions in the Middle East and a higher-for-longer Federal Reserve (Fed) interest rate stance. 

GBP/USD extends its losses for the second successive day, trading around 1.3390 during the Asian hours on Wednesday. The pair depreciates as the US Dollar (USD) receives support from increased risk aversion stemming from the Middle East conflict.

European People’s Party lead trade negotiator Željana Zovko said that a deal between the United States (US) and the European Union (EU) was reached, Reuters reported on Wednesday. Zovko added that deal on US tariffs provides certainty for European firms

On Wednesday, the People’s Bank of China (PBOC) sets the USD/CNY central rate for the trading session ahead at 6.8397 compared to the previous day's fix of 6.8375 and 6.8072 Reuters estimate.

The AUD/USD pair loses momentum to near 0.7095 during the early Asian trading hours on Wednesday. Geopolitical uncertainties and elevated crude oil prices weigh on the Australian Dollar (AUD) against the US Dollar (USD).