Germany 30-y Bond Auction rose from previous 3.49% to 3.64%

The Eurozone industrial sector activity declines by 0.2% in May, while it was expected to rise at the same pace, according to data published by Eurostat. In April, the Industrial Production data rose by 0.3%, revised higher from 0.1%.

The Japanese Yen (JPY) struggles in the lower range of the 162.00s against the US Dollar (USD) on Wednesday, not far from the 40-year lows, at 162.85. Rising geopolitical tensions and higher Oil prices offset the positive impact of the soft US consumer inflation data released on Tuesday.

USD/CAD remains subdued after registering modest losses in the previous day, trading around 1.4050 during the European hours on Wednesday. The technical analysis of the daily chart indicates the pair is testing the lower boundary of the symmetrical triangle.

Eurozone Industrial Production s.a. (MoM) came in at -0.2%, below expectations (0.2%) in May

Eurozone Industrial Production w.d.a. (YoY) came in at -1.2%, below expectations (-0.5%) in May

Societe Generale analysts describe USD/CAD pulling back after failing above 1.4130, with interim resistance near 1.4250 capping gains.

The USD/CHF pair attracts some dip-buyers on Wednesday and moves further away from the weekly trough, around the 0.8060 region set the previous day.

United Overseas Bank’s Quek Ser Leang and Lee Sue Ann report USD/JPY fluctuated between 161.62 and 162.47, closing slightly lower at 162.23 after failing to test 162.70. Intraday, the pair is seen trading between 161.75 and 162.50.

The British Pound (GBP) is up 0.1% at around 1.3403 against the US Dollar (USD) during the European trading session on Wednesday. The GBP/USD pair gains as the US Dollar comes under selling pressure, with market participants dialing down expectations for Federal Reserve (Fed) interest rate hikes.

The Euro (EUR) pulls back from intra-week highs just above 185.60 against the Japanese Yen (JPY) on Wednesday but maintains its immediate bullish bias, trading 0.5% higher on the week so far.

ING’s Francesco Pesole expects the Bank of Canada to keep rates at 2.25%, with limited incentive to push back against modest December tightening pricing. He sees June CPI potentially falling below 3.0% as petrol prices drop, while core remains near 2.0%.

United Overseas Bank’s Quek Ser Leang and Lee Sue Ann note AUD/USD surged to 0.6992 after an earlier dip, with strong short-term momentum pointing to further gains. They see scope for a test of 0.6995, while the major resistance at 0.7015 is key.

The GBP/JPY cross scales higher for the second straight day and climbs to a fresh weekly top, around the 217.70 region, during the first half of the European session on Wednesday.

Here is what you need to know on Wednesday, July 15:

OCBC’s Sim Moh Siong and Christopher Wong highlight that the New Zealand Dollar (NZD) continues to outperform G10 peers, underpinned by hawkish Reserve Bank of New Zealand (RBNZ) rhetoric and improving domestic activity data.

The NZD/USD pair holds steady above the 0.5800 mark through the early European session on Wednesday and, for now, seems to have stalled the previous day's late pullback from a nearly one-month high, around the 0.5845 zone.

The AUD/USD pair gathers strength to around 0.6990 during the early European trading hours on Wednesday. The US Dollar (USD) softens against the Australian Dollar (AUD) as markets reduced their bets of a US rate hike after US inflation slowed more than expected in June.

The Euro (EUR) bounces back against the Canadian Dollar (CAD) after a three-day losing streak, trading 0.13% higher to near 1.6078 during the European trading session on Wednesday.

United Overseas Bank’s Quek Ser Leang and Lee Sue Ann highlight that GBP/USD’s late-month advance has stalled, with the pair rebounding to 1.3442 before closing at 1.3387. Intraday, the British Pound (GBP) is expected to trade between 1.3360 and 1.3430.

Silver (XAG/USD) ticks lower on Wednesday, trading at $58.50 at the time of writing, after rejection at the $59.00 area on Tuesday. The sour market sentiment amid rising hostilities in Iran continues to weigh on the precious metal, offsetting the positive impact of a weaker US Dollar Index (DXY).

The USD/JPY pair trades slightly lower at around 162.20 during the European trading session on Wednesday. The pair edges down as the US Dollar (USD) underperforms due to easing fears of interest rate hikes by the Federal Reserve (Fed) this year.

The USD/CAD pair loses traction to near 1.4050 during the early European trading hours on Wednesday. Traders expect the US Federal Reserve (Fed) to skip the July rate hike as inflation cools, weighing on the US Dollar (USD) against the Canadian Dollar (CAD).

United Overseas Bank’s Quek Ser Leang and Lee Sue Ann report EUR/USD briefly spiked to 1.1462 after weaker United States (US) Consumer Price Index (CPI) before retreating to 1.1419.

The Indian Rupee (INR) gains ground against the US Dollar (USD) on Wednesday after rising significantly in the last three trading days.

The EUR/GBP cross gains momentum to near 0.8535 during the early European trading hours on Wednesday. Traders ramp up bets  on the Bank of England (BoE) and European Central Bank (ECB) rate hikes as oil price surge reignites inflation fears.

The EUR/USD pair attracts some dip-buyers following the previous day's pullback from the 1.1460-1.1470 horizontal resistance, though it remains confined within a multi-week-old range.

The AUD/JPY cross trades in positive territory around 113.25 during the early European trading hours on Wednesday. The Japanese Yen (JPY) edges lower against the Australian Dollar (AUD) after reports regarding the Government Pension Investment Fund (GPIF).

USD/IDR loses ground for the second consecutive day, trading around 18,110 during the Asian hours on Wednesday. The pair depreciates as the Indonesian Rupiah (IDR) strengthens following S&P Global Ratings' reaffirmation of Indonesia’s investment-grade credit rating with a stable outlook.

USD/CHF steadies after registering 0.7% losses in the previous day, trading around 0.8090 during the Asian hours on Wednesday.