Mexico 1st half-month Inflation came in at -0.11%, below expectations (0.1%) in June

Mexico 1st half-month Core Inflation came in at 0.19% below forecasts (0.2%) in June

MUFG’s Lloyd Chan notes that Indonesian Rupiah (IDR) has been supported by Bank Indonesia’s proactive tightening and FX measures, but elevated US yields and domestic policy uncertainty are testing this buffer.

United States MBA Mortgage Applications: 1% (June 19) vs -3.8%

The comments from Swiss National Bank (SNB) policymaker Petra Tschudin released during the European trading session on Wednesday indicate that medium-term inflation pressures remain unchanged and the central bank is ready to intervene in the FX market if necessary.

Discussions on the future of the Strait of Hormuz could soon gain momentum. According to Reuters, Qatar's Prime Minister is in Muscat on Wednesday to initiate, alongside Oman, a dialogue process involving Iran, the Gulf states and Iraq on the reopening and future operation of the strategic waterway.

Standard Chartered’s Saabir Salad notes that the National Bank of Hungary (MNB) cut the base rate by 25 bps to 6.00%, in line with expectations, and delivered notably dovish forward guidance.

The German IFO Institute Business Climate Index improves to 85.6 in June, as expected, from 85.0 in May, revised higher from 84.9.

Deutsche Bank strategists note that United States (US) equities experienced a classic risk-off session, with major indexes pressured by a sharp sell-off in chipmakers. The NASDAQ dropped more than the S&P 500 as semiconductor weakness dragged broader benchmarks lower.

Commerzbank notes USD/SGD rose 0.3% to 1.2970 and has been grinding higher since mid-June on broader Dollar strength.

Danske Research Team notes that the US Dollar (USD) strengthened across G10, driving EUR/USD below 1.1400. The move came alongside a broader risk-off tone, with equities lower, VIX higher and Oil prices retreating.

USD/IDR gains ground for the third successive day, trading around 17,980 during the Asian hours on Wednesday. The pair appreciates as the US Dollar (USD) strengthens on expectations of further Fed tightening.

In a speech prepared by Bank of Japan (BoJ) Governor Kazuo Ueda and read out by Deputy Governor Ryozo Himino during the European trading session on Wednesday, Ueda stated that the monetary policy path will remain on the upside, citing risks to inflation overshooting the 2% target.

Reserve Bank of Australia (RBA) Deputy Governor Andrew Hauser said that the central bank still has work to do to reduce inflation, which remains far too high, Reuters reported on Wednesday.

Danske Research Team reports a sharp global equity selloff led by a more than 4% drop in tech, even as several defensive sectors finished higher.

AUD/JPY remains steady after six days of losses, trading around 0.6920 during the Asian hours on Wednesday. The currency cross moves little as the Australian Dollar (AUD) experiences minor volatility following the release of Australia’s Consumer Price Index (CPI) data.

GBP/USD extends its gains for the second successive day, trading around 1.3200 during the Asian hours on Wednesday. The currency pair depreciated as the US Dollar (USD) gained momentum, driven by a combination of robust domestic economic data and a complex, mixed geopolitical landscape.

The Bank of Japan (BoJ) published the Summary of Opinions from the June monetary policy meeting, with the key findings noted below.   

Japan Corporate Service Price Index (YoY) rose from previous 3% to 3.3% in May

Argentina Gross Domestic Product (YoY) came in at 2.3%, above expectations (1.7%) in 1Q

Commerzbank highlights strong South Korean export momentum, led by semiconductors and petroleum, but notes that South Korean Won (KRW) remains one of Asia’s weakest currencies versus the Dollar.

DBS economist Radhika Rao reports that India and US are close to formalising an interim trade agreement under a new framework first agreed in February.

United States 2-Year Note Auction: 4.189% vs 4.071%

TD Securities strategist Prashant Newnaha notes that softer S&P Australia Flash Composite PMI data, including weaker new orders and moderating price pressures, supports the Reserve Bank of Australia keeping its cash rate unchanged at 4.35% in August.

Nomura strategists note Euro area business activity stayed in contraction in June, with the composite PMI at 49.5 despite a small rise.

Bank of England (BoE) policymaker Alan Taylor said on Tuesday that keeping interest rates on hold for an extended period remains the most appropriate policy response, according to the text of a speech due to be delivered at an event hosted by Barclays and the Center for Economic Policy Research.

United States Richmond Fed Manufacturing Index came in at 4 below forecasts (9) in June

Bank of Canada (BoC) Governor Tiff Macklem said on Tuesday that global imbalances are increasing and may risk financial stability.

United States S&P Global Manufacturing PMI above expectations (54.8) in June: Actual (55.7)

United States S&P Global Composite PMI up to 52.2 in June from previous 51.5