Commerzbank’s Antje Praefcke argues that the Dollar remains hard to beat as markets await a peace agreement and clarity on US politics and inflation. Strong US data and hawkish FOMC commentary are seen supporting the USD, but she doubts much further upside.

The EUR/USD pair trades on a negative note near 1.1410 during the early European trading hours on Wednesday. Cooling inflation in Germany has lowered expectations for the European Central Bank (ECB) rate hikes, weighing on the Euro (EUR) against the US Dollar (USD).

The Indian Rupee (INR) opens lower against the US Dollar (USD) on Wednesday. The USD/INR pair rises to near 94.72 as stronger United States (US) Treasury Yields and higher US Dollar have diminished the appeal of risk-sensitive currencies.

The USD/JPY pair trades 0.1% higher to near 162.73 during the European trading session on Wednesday. The pair reflects strength as surging United States (US) Treasury Yields have strengthened the US Dollar (USD).

USD/CHF gains ground for the second consecutive day, trading around 0.8090 during the Asian hours on Wednesday. Traders will likely observe the upcoming Swiss Real Retail Sales and SVME Purchasing Managers' Index (PMI) data due later in the day.

The GBP/USD pair meets with a fresh supply during the Asian session on Wednesday and moves away from a nearly two-week high around the 1.3275 region, touched the previous day.

The AUD/JPY cross trades in negative territory around 112.20 during the early European trading hours on Tuesday. The Japanese Yen (JPY) strengthens against the Australian Dollar (AUD) as traders are on alert for possible intervention from Japanese authorities.

EUR/JPY moves little after four days of gains, trading around 185.70 during the Asian hours on Monday.

USD/CAD has recovered its recent losses from the previous day, trading around 1.4220 during the Asian hours on Wednesday. The pair appreciates as the US Dollar (USD) gains ground on safe-haven demand amid uncertainty over United States (US)-Iran Doha talks.

The NZD/USD pair holds negative ground near 0.5665 during the Asian trading hours on Wednesday. The New Zealand Dollar (NZD) remains weak against the US Dollar (USD) following the Chinese economic data.

The AUD/USD pair struggles to capitalize on the previous day's goodish rebound from the 0.6865 region, or a three-month low, and meets with a fresh supply during the Asian session on Wednesday.

China's RatingDog Manufacturing Purchasing Managers' Index (PMI) eased to 51.7 in June from 51.8 in May the latest data published by RatingDog showed on Wednesday. The market forecast was for a 51.7 reading.

The USD/JPY pair builds on the previous day's breakout momentum and continues to scale new multi-decade highs through the Asian session on Wednesday.

On Wednesday, the People’s Bank of China (PBOC) sets the USD/CNY central rate for the trading session ahead at 6.8067 compared to the previous day's fix of 6.8109 and 6.7795 Reuters estimate.

The EUR/USD pair loses momentum to near 1.1410 during the early Asian trading hours on Wednesday, pressured by receding bets for aggressive tightening by the European Central Bank (ECB).

The GBP/USD pair trades in negative territory around 1.3245 during the early Asian trading hours on Wednesday. Traders await the UK political developments, focusing on potential leadership by Andy Burnham and adherence to existing fiscal rules.

South Korea Trade Balance increased to $36.14B in June from previous $27.04B

The Euro fails to gain traction versus the US Dollar on Tuesday, with the pair remaining steady at around 1.1400 as economic data on both sides of the Atlantic barely moved the needle. The EUR/USD trades at 1.1420.

The USD/CHF holds firm around 0.8070 on Tuesday, after losing 0.29% on Monday, supported by broad US Dollar weakness amid month-end flows and an improvement in risk appetite.

The New Zealand Dollar (NZD) edges higher against the US Dollar (USD) on Tuesday, supported by upbeat New Zealand business confidence data and a modest pullback in the Greenback. At the time of writing, NZD/USD trades around 0.5677, up 0.5% on the day.

AUD/USD trades higher near 0.6915 on Tuesday as investors digest the latest Reserve Bank of Australia (RBA) Meeting Minutes and a modest improvement in United States (US) Consumer Confidence.

USD/JPY trades around 162.65 at the time of writing, up 0.44% on the day, and remains close to its highest level in several decades.

The Euro (EUR) stages a rebound against the US Dollar (USD) on Tuesday as month-end repositioning weighs modestly on the Greenback, limiting support from upbeat US economic data. At the time of writing, EUR/USD trades around 1.1415 after hitting an intraday low of 1.1382.

The Pound Sterling advances 0.11% on Tuesday, even though UK data showed the economy is slowing, while the latest US jobs report showed that the number of vacancies rose in May, according to the US Bureau of Labour Statistics. The GBP/USD trades at 1.3270.

Silver (XAG/USD) edges higher on Tuesday as the US Dollar (USD) trims part of its intraday gains despite upbeat US economic data. At the time of writing, XAG/USD trades around $59.70, up nearly 2.5% on the day.

Scotiabank’s FX strategists report that EUR/USD is softer as regional inflation data point to downside risks for national CPI, even as ECB President Lagarde signals that more tightening could come. Swaps price modest additional tightening by September.

USD/CAD trims its intraday gains on Tuesday as the Canadian Dollar (CAD) strengthens after the latest Canadian Gross Domestic Product (GDP) data surprised to the upside. At the time of writing, the pair trades around 1.4203 after hitting an intraday high of 1.4247.

TD Securities strategists argue that recent improvements in Canadian growth data justify a more constructive view on the Canadian Dollar (CAD).

ING’s Chris Turner notes that USD/JPY has broken above its 2024 highs near 162, reaching levels last seen in the 1980s, with traders focused on potential Bank of Japan (BoJ) action.

EUR/JPY trades modestly higher on Tuesday, hovering around 185.10 at the time of writing, up 0.07% on the day. The pair is supported by a resilient Euro (EUR) despite softer-than-expected German inflation data.