EUR/USD
The EUR/USD pair trades vulnerably near the two-month low of 1.1596, posted on Tuesday, during the Asian trading session on Wednesday. The major currency pair faces selling pressure as the US Dollar (USD) trades firmly due to the combined efforts of the risk-aversion market theme and rising United States (US) Treasury Yields.
GBP/USD
The British Pound (GBP) drops against its major currency peers, sliding to near 1.3375, during the European trading session on Wednesday. The British currency comes under pressure, following the release of the United Kingdom (UK) Consumer Price Index (CPI) data for April, which showed that inflationary pressures cooled down at a faster-than-expected pace.
USD/JPY
The USD/JPY pair trades in negative territory around 158.95 during the early European trading hours on Wednesday. Stronger-than-expected Japanese economic data and intervention fears provide some support to the Japanese Yen (JPY) against the US Dollar (USD). Japan’s April National Consumer Price Index (CPI) inflation report will be the highlight later on Friday.
AUD/USD
The AUD/USD pair remains on the defensive through the Asian session on Wednesday and currently trades around the 0.7100 mark, just above its lowest level since April 14, touched the previous day. Traders have ramped up their bets for an interest rate hike by the US Federal Reserve (Fed) amid worries that the Iran war-led surge in energy prices would rekindle inflationary pressures. This assists the US Dollar (USD) in preserving its recent strong gains to a six-week high, offsetting the Reserve Bank of Australia’s (RBA) hawkish stance and weighing on the AUD/USD pair.
NZD/USD
The NZD/USD pair falls toward the 0.5830 region on Wednesday as the United States (US) Dollar (USD) strengthens following upbeat labor-market data and renewed tensions linked to Iran.
The latest ADP employment report showed that US private employers added 42,250 jobs in the first week of May, marking the strongest reading since October 2025. The stronger labor-market data reinforced expectations that the Federal Reserve (Fed) could maintain a cautious stance on interest-rate cuts, supporting US Treasury yields and boosting the Greenback.
USD/CAD
USD/CAD remains stronger for the second successive day, trading around 1.3760 during the Asian hours on Wednesday. The pair appreciates as the commodity-linked Canadian Dollar (CAD) faces challenges due to a slight decline in oil prices. Canada is one of the world’s largest oil producers and exporters, sending the vast majority of its supply to the United States (US). Changes in oil prices impact Canada’s export revenues and terms of trade.
USD/CHF
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).
CRUDE OIL
Oil prices fell slightly in Asian trade on Wednesday as markets awaited more cues on U.S.-Iran talks after Washington flagged progress in ongoing negotiations.
Gold enters the May 20 session inside a market increasingly shaped by policy credibility, real yield repricing and reserve positioning ahead of the Federal Reserve Minutes release later today.
The broader macro environment remains dominated by higher for longer expectations following stronger US inflation data earlier this week. Core CPI accelerated to 0.4% m/m against expectations of 0.3%, while annual CPI reached 3.8%. These figures reinforced Treasury pressure and supported a stronger Dollar across global markets. This environment continues influencing gold through the credibility layer of the macro system. The market is recalibrating expectations around the duration of restrictive policy conditions while reassessing the balance between inflation persistence and future easing potential.
Gold therefore continues behaving primarily as a credibility asset and reserve positioning mechanism rather than as a short term volatility hedge.
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