Rabobank’s Jane Foley Senior FX Strategist discusses speculation that Japan’s Ministry of Finance could intervene in favour of the Japanese Yen as USD/JPY trades near levels last seen in 1986.

The Japanese Yen (JPY) continues heading south against the US Dollar (USD) on Wednesday. The USD/JPY pair has eased to the 162.70 area after hitting a fresh 40-year high at 162.84, but remains above Tuesday’s high of 162.67, nearly 0.6% higher on the week so far.

DBS economist Radhika Rao reports that USD/INR has eased towards the mid-94 handle as India’s balance of payments (BoP) improves and commodity prices fall.

Societe Generale analysts Dev Ashish and Brendan McKenna discuss how ongoing United States-Mexico-Canada Agreement (USMCA) review uncertainty is likely to prolong policy risk for Mexico and weigh on growth and capex.

AUD/USD trades lower on Wednesday, hovering around 0.6900 at the time of writing, down 0.31% on the day as the US Dollar (USD) benefits from renewed demand amid a cautious market environment.

ING’s Chris Turner highlights risks from the scheduled United States-Mexico-Canada Agreement (USMCA) review for Canada and Mexico, noting potential delays as parties renegotiate terms.

The Euro’s (EUR) mild recovery against the US Dollar (USD) seen earlier in the week has come to an end on Wednesday.

MUFG’s Derek Halpenny notes that stronger Tankan data support the June BoJ rate hike and could justify faster tightening ahead, but markets still price only limited moves.

Commerzbank’s Tatha Ghose argues that Turkey’s seemingly improved trade data are largely optical, with seasonally-adjusted figures showing no real trend improvement and strong import momentum.

EUR/JPY trades around 185.40 at the time of writing, down 0.15% on Wednesday, as the Euro (EUR) weakens while the Japanese Yen (JPY) gains strength.

EUR/JPY halts its four-day winning streak, trading around 185.40 during the European hours on Wednesday. The currency cross holds losses as the Euro (EUR) remains subdued following the release of the Eurozone’s preliminary Harmonized Index of Consumer Prices (HICP) data.

The USD/CAD pair attracts fresh buyers following the previous day's modest pullback from the vicinity of mid-1.4200s, or the highest since April 2025, and maintains its bid tone through the first half of the European session on Wednesday.

Societe Generale strategists underline that USD/JPY upside remains intact despite strong Japanese data, with 165 cited as a new line in the sand. They recall July 2024’s painful squeeze for Japanese Yen (JPY) shorts and warn that markets are again challenging the Ministry of Finance.

Eurozone’s preliminary Harmonized Index of Consumer Prices (HICP) data for June arrives at 2.8% Year-on-Year (YoY), lower than estimates of 3% and the previous reading of 3.2%. On a monthly basis, the inflation data declined by 0.1% after rising at a similar pace in May.

Eurozone Core Harmonized Index of Consumer Prices (MoM) down to 0.2% in June from previous 0.3%

Eurozone Core Harmonized Index of Consumer Prices (YoY) below forecasts (2.6%) in June: Actual (2.4%)

Eurozone Harmonized Index of Consumer Prices (MoM) fell from previous 0.1% to -0.1% in June

Eurozone Harmonized Index of Consumer Prices (YoY) below expectations (3%) in June: Actual (2.8%)

UOB’s Quek Ser Leang highlights that EUR/USD price action offers few fresh clues after a dip to 1.1381 and rebound to 1.1436, with the pair expected to trade between 1.1385 and 1.1435 intraday.

The Japanese Yen (JPY) trades slightly higher against a majority of its currency peers, but edges lower to near 162.66 against the US Dollar (USD) during the European trading session on Wednesday.

Silver (XAG/USD) is trading lower on Wednesday, with the US Dollar buoyed by strong US macroeconomic data and higher US Treasury yields.

The British Pound (GBP) is showing resilience against a backdrop of local political shifts and brewing fiscal questions.

Societe Generale strategists describe a quiet start to Q3 for USD/INR, with the pair marginally bid but capped below its 50‑day moving average near 95.02.

Eurozone HCOB Manufacturing PMI above expectations (51.3) in June: Actual (51.4)

EUR/USD depreciates after flattening in the previous day, trading around 1.1390 during the European hours on Wednesday. The Euro (EUR) remains weaker ahead of Eurozone Harmonized Index of Consumer Prices (HICP) data due to be released later in the day.

Attention shifts to Wednesday’s release of the June ISM Manufacturing Purchasing Managers Index (PMI), one of the most closely followed indicators of activity in the US manufacturing sector and an important barometer of the broader economy.

The British Pound (GBP) is down 0.22% to near 1.3234 against the US Dollar (USD) during the European trading session on Wednesday. The GBP/USD pair trades lower as surging United States (US) Treasury Yields have strengthened the US Dollar (USD).

Germany HCOB Manufacturing PMI above forecasts (50) in June: Actual (50.3)

France HCOB Manufacturing PMI above expectations (50.7) in June: Actual (51.2)

UOB’s Quek Ser Leang reports AUD/USD rebounded sharply from 0.6867 to 0.6930, with the move seen as stretched and intraday trade expected between 0.6890 and 0.6930, below 0.6935.