USD/CAD inches higher after posting minor gains in the previous day, trading around 1.3950 during the Asian hours on Wednesday.

The GBP/USD pair struggles to capitalize on its recovery gains recorded over the past two days, from a three-week low, and oscillates in a narrow band during the Asian session on Wednesday.

The NZD/USD pair holds steady around 0.7030 during the Asian trading hours on Wednesday. The New Zealand Dollar (NZD) steadies against the US Dollar (USD) following China’s economic data. All eyes will be on the US May Consumer Price Index (CPI) inflation report later on Wednesday. 

China’s Consumer Price Index (CPI) climbed 1.2% in May from a year ago after arriving at a rise of 1.2% in April, the National Bureau of Statistics of China reported on Wednesday. The market consensus was for 1.3% in the reported period.

The USD/JPY pair enters a bullish consolidation phase during the Asian session on Wednesday and moves little following the release of Japan's stronger-than-expected Producer Price Index (PPI).

On Wednesday, the People’s Bank of China (PBOC) sets the USD/CNY central rate for the trading session ahead at 6.8130 compared to the previous day's fix of 6.8147 and 6.7749 Reuters estimate.

The EUR/USD pair loses momentum to near 1.1540 during the early Asian session on Wednesday. Renewed tensions in the Middle East following the US attack on Iran drag the Euro (EUR) lower against the US Dollar (USD).

Sterling finally got a piece of good domestic news and managed to enjoy it for about half a session. GBP/USD rallied from just below 1.3350 to a touch above 1.3400 on Tuesday, tagged the 200-day Exponential Moving Average (EMA), and spent the rest of the day leaking back beneath the figure.

Six weeks ago Japan reportedly spent a record sum dragging this pair off exactly this shelf.

The Aussie Dollar edges lower, some 0.25% against the Greenback on Tuesday as the market mood turned sour due to Trump's threats to retaliate against Iran after a helicopter was downed in the Strait of Hormuz. The AUD/USD trades at 0.7027 after testing a six-week low of 0.7005.

The USD/CHF advances some 0.11% trades near nine-week highs of 0.7991 as risk aversion boosted the Greenback, which has trimmed some earlier losses, to challenge the 0.8000 figure.

The USD/JPY pair is trading slightly higher on Tuesday as investors digest stronger Japanese growth figures while maintaining a cautious stance ahead of key United States (US) inflation data. The gopher trades near the 160.30 price zone at the time of writing.

The Pound Sterling gains 0.31% on Tuesday as the Greenback trims some of its earlier losses, amid risk appetite souring and traders waiting for the release of US inflation figures and tensions in the Middle East, tempered by US President Trump's demand on Israel and Iran.

The AUD/USD pair falls to near 0.7040 on Tuesday, as the Australian Dollar (AUD) failed to gain support from stronger-than-expected Chinese trade data released earlier in the Asian session.

EUR/USD trades on the front foot on Tuesday as tentative signs of de-escalation in the Middle East conflict weigh on safe-haven demand for the US Dollar (USD). Lower Oil prices are also supporting the Euro (EUR), given the Eurozone's heavy reliance on imported energy.

USD/CAD trades around 1.3950 on Tuesday at the time of writing after snapping a four-day winning streak.

Scotiabank’s Analyst Team notes Sterling is a moderate outperformer versus core majors, supported by broader risk appetite rather than domestic data.

The British Pound (GBP) strengthens against the Japanese Yen (JPY) on Tuesday as easing tensions in the Middle East support risk-sensitive assets, while the Japanese Yen comes under pressure after Reuters reported that the Bank of Japan (BoJ) is considering pausing its bond-tapering program.

Scotiabank’s Analyst Team describes USD/CAD as little changed near the top of its year-to-date range, with conditions favouring at least a minor Canadian Dollar rebound as risk sentiment improves.

National Bank Canada's (NBC) Stéfane Marion and Kyle Dahms observe that the Euro has softened alongside the broader USD rally, even as Eurozone inflation has reaccelerated and pushed the ECB toward a more hawkish stance.

Rabobank's Senior FX Strategist Jane Foley discusses how prospective Bank of Japan (BoJ) policy shifts on JGB purchases and rate hikes could influence the Japanese Yen (JPY).

BNP Paribas strategists argue that Europe is emerging as an alternative safe haven, with the Euro gaining ground as a global safe asset.

National Bank Canada's (NBC) Stéfane Marion and Kyle Dahms highlights that the Canadian Dollar (CAD) has been the weakest reserve currency recently, with USD/CAD back near 1.39. They link this to Canada’s deteriorating real growth, negative Canada–U.S. 2‑year spreads and falling Gold prices.

BNY’s Bob Savage reports that Bank of Japan (BoJ) officials are considering pausing further reductions in JGB purchases after March 2027, keeping buying near ¥2.1tn as the balance sheet shrinks via maturities. The June meeting is expected to deliver a rate hike to 1.0%.

The Australian Dollar (AUD) trades lower against its major currency peers during the European trading session on Tuesday. The Aussie Dollar is up 0.15% against the US Dollar (USD) as the market sentiment turns risk-on.

Brown Brothers Harriman’s (BBH) Elias Haddad observes that AUD/USD is consolidating around 0.7050, with yield spreads pointing to downside risks below 0.7000.

The Japanese Yen (JPY) continues to face strong headwinds, trading back above the critical 160.00 threshold against the US Dollar despite improving domestic fundamentals.

GBP/USD trades around 1.3390 on Tuesday at the time of writing, up 0.42% on the day, mainly benefiting from a weaker US Dollar (USD) following confirmation that direct attacks between Israel and Iran have ceased.

The Euro (EUR) trades lower against the British Pound (GBP) on Tuesday, with bears testing support at two-week lows in the area of 0.8630, and bearish momentum building up.

The Euro (EUR) ticks up for the second consecutive day against the US Dollar (USD) on Tuesday to pare some of last week’s losses.