Rabobank strategist Molly Schwartz notes that Canada has entered a technical recession, with Gross Domestic Product (GDP) contracting for two consecutive quarters and missing expectations.

United States ADP Employment Change came in at 122K, above forecasts (117K) in May

UOB economist Lee Sue Ann notes that softer Australian Gross Domestic Product (GDP), easing inflation and a cooling labour market have reduced pressure on the Reserve Bank of Australia (RBA) to tighten further.

DBS Group Research economist Radhika Rao argues that Eurozone markets face a stagflationary shock from US-Iran tensions that will hit Europe harder than the US, pushing the European Central Bank (ECB) to tighten policy earlier.

European Central Bank (ECB) Vice-Chair of the Supervisory Board Frank Elderson said during the European trading session on Wednesday that the balance of risks has clearly deteriorated due to Middle East conflicts.

United States MBA Mortgage Applications increased to -2.5% in May 29 from previous -8.5%

The European Central Bank (ECB) could tighten monetary policy sooner than previously expected, according to the latest Reuters poll of economists.

In a podcast interview on Wednesday, US President Donald Trump said that “Iran has agreed they will not have a nuclear weapon.”

MUFG’s Derek Halpenny argues that strong United Kingdom (UK) credit and mortgage data, alongside elevated UK front-end yields, support the case for further Bank of England (BoE) tightening.

Iran's Foreign Ministry has stated during the European trading session on Wednesday that it condemns United States (US) strikes on Iranian tanker and Qeshm island.

UOB strategists Quek Ser Leang and Lee Sue Ann note AUD/USD failed to retest 0.7135 and instead held in a tight 0.7153–0.7187 band, but still sees a soft tone with scope for a drift toward 0.7150.

Danske Research Team notes that EUR/DKK hit a new historic high at 7.4739, with the Danish central bank refraining from FX intervention in May. They argue that while the bank shows patience with upward pressure, continued strength would likely prompt action to cap EUR/DKK.

The Institute for Supply Management (ISM) is scheduled to release the May Services Purchasing Managers Index (PMI) on  Wednesday. Market participants anticipate a modest improvement, with the index forecast at 53.8, up from 53.6 in April.

Bank of Japan (BoJ) Governor Kazuo Ueda reaffirms that the direction of the monetary policy remains on the upside, while speaking at the Kisaragi-kai Meeting on Wednesday.

Chris Turner at ING highlights that last year’s US Dollar (USD) debasement trade favoured the Swiss Franc (CHF), Gold and bitcoin, but a more hawkish Fed view could reverse this.

United Kingdom S&P Global Composite PMI came in at 49.7, above expectations (48.5) in May

United Kingdom S&P Global Services PMI registered at 49.3 above expectations (47.9) in May

TD Securities strategists Prashant Newnaha and Alex Loo note that Australian Q1 Gross Domestic Product (GDP) matched the Reserve Bank of Australia’s (RBA) 0.3% q/q implied forecast, but highlight that household and government spending are weak while data centre investment props up activity.

According to a report from NHK released in the European trading session on Wednesday, Japan’s Prime Minister (PM) Sanae Takaichi is planning to travel to Europe from the latter half of next week to attend the G7 Summit in France.

Danske Research Team notes that EUR/USD stayed broadly unchanged in a 1.1620–1.1650 range as short-term US and Euro area rates were steady. The analysts highlight stronger US JOLTS data and a robust labour market, which they say is no longer cooling.

The Indonesian Rupiah (IDR) continues to face severe downward pressure as a combination of domestic policy uncertainty and a hostile global environment dampens sentiment toward the Asian currency.

Asian equities performed mixed as traders adopted caution while monitoring US–Iran talks, with mixed signals from both sides keeping geopolitical uncertainty elevated.

Spain HCOB Services PMI came in at 50.1, above forecasts (48) in May

UOB strategists Quek Ser Leang and Lee Sue Ann describe GBP/USD price action as range-bound after a brief drop to 1.3407, expecting the pair to edge lower toward 1.3430 while keeping 1.3405 as distant support.

OCBC’s FX Strategists Sim Moh Siong and Christopher Wong reiterate their Fragile Oil Balance view, stating that Brent has fallen below USD100/bbl on ceasefire optimism but remains supported by elevated geopolitical risks and Hormuz vulnerability.

Danske Research Team observes that equities rose again, led by Tech, with many indices hitting new all-time highs. They attribute the move mainly to positive macro news and stronger US labour data, which eased concerns about the US economy.

Commerzbank analysts Michael Pfister and Norman Liebke preview Swiss inflation for May, expecting headline at 0.6% versus consensus 0.7% and core at 0.3%. They stress that recent Gross Domestic Product (GDP) data support this benign outlook.

UOB strategists Quek Ser Leang and Lee Sue Ann keep EUR/USD in a neutral short-term range, seeing the pair oscillating between 1.1590 and 1.1685 after a brief dip to 1.1606.

Russia S&P Global Services PMI: 48.7 (May) vs previous 49.7

India HSBC Services PMI came in at 59.8, above forecasts (59) in May