Russia Producer Price Index (MoM): 6.1% (April) vs 2%

Russia Producer Price Index (YoY) climbed from previous -7.8% to 5.5% in April

The GBP/USD posts gains of over 0.30% during the North American session as the Greenback turns negative for the day amid optimism about US-Iran talks that could end the conflict, which has lasted nearly 11 weeks.

EUR/USD stages a modest rebound on Wednesday as a pullback in US Treasury yields limits further upside in the US Dollar (USD), while the Euro (EUR) draws support from the latest Eurozone inflation data, which strengthened expectations that the European Central Bank (ECB) could raise interest rates s

The AUD/USD pair rose near the 0.7150 region on Wednesday as the United States (US) Dollar (USD) continued to strengthen following upbeat US labor market data from Tuesday. Traders now turn their attention to the upcoming Australian employment report.

USD/CAD trades with a mild upside bias on Wednesday, supported by a firmer US Dollar (USD), while a modest pullback in Crude Oil prices weighs slightly on the commodity-linked Canadian Dollar (CAD). At the time of writing, the pair is trading around 1.3760, hovering near one-month highs.

Scotiabank’s strategists Shaun Osborne and Eric Theoret report that USD/CAD is trading around 1.3773 as the Canadian Dollar (CAD) underperforms following a downside Consumer Price Index (CPI) surprise.

The Euro (EUR) weakens against the British Pound (GBP) on Wednesday, with EUR/GBP extending losses for a third consecutive day as traders digest the latest inflation data from both the United Kingdom and the Eurozone.

NZD/USD trades around 0.5850 on Wednesday at the time of writing, up 0.22% on the day. Despite the moderate gains, the New Zealand Dollar (NZD) upside remains limited as the US Dollar (USD) continues to benefit from defensive demand driven by geopolitical risks.

United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann keep a mildly constructive stance on USD/JPY, expecting consolidation between 158.75 and 159.25 in the near term.

OCBC’s Christopher Wong notes USD/JPY has pushed back toward 159, driven largely by US rates dynamics rather than domestic Japanese factors. He highlights rising intervention risk as the pair approaches the 160–161 zone, with officials signalling readiness to act against excessive FX moves.

ING’s Francesco Pesole maintains a bearish bias on EUR/USD, noting markets have raised the bar for trading positive Middle East headlines. He highlights 1.1570 as key support and recalls the early-March break below 1.160.

USD/JPY trades around 159.05 at the time of writing on Wednesday, virtually unchanged on the day, as investors balance several opposing factors surrounding the Japanese Yen (JPY) and the US Dollar (USD).

Brown Brothers Harriman’s (BBH) Elias Haddad reports GBP/USD is trading below 1.3400 after United Kingdom (UK) inflation undershot expectations, easing pressure on the Bank of England (BoE).

The USD/CAD pair is up 0.2% to near 1.3772 during the European trading session on Wednesday. The Loonie pair reflects strength as the Canadian Dollar (CAD) underperforms its peers due to easing expectations that the Bank of Canada (BoC) will raise interest rates in the July policy meeting.

The Euro (EUR) nurses minor losses against the British Pound (GBP) on Wednesday, trading right above the 0.8655 support area, after losing nearly 0.7% so far this week.

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.