Japan weighs supplementary budget to shield households from fuel price surge.Japan's government is considering a supplementary budget to ease household fuel costs ahead of summer, Kyodo reports, sending 30- and 40-year JGB yields higher on increased debt issuance fears.

Fed's Kashkari Reinforces Hawkish Stance Amid Iran-Driven Inflation.Minneapolis Fed President Neel Kashkari signaled Wednesday that the Federal Reserve remains firmly focused on inflation risks, warning that stronger labor market conditions and rising energy-driven price pressures are strengthening the case for maintaining a hawkish policy stance.

Collins: Fed Should Hold for Now but Hike Risk Has Increased.Boston Fed President Susan Collins said on Wednesday that while holding interest rates steady remains her base case, the Federal Reserve may still need to tighten policy further if inflation pressures fail to ease. Speaking at the Boston Economic Club, Collins stressed that the longer the Middle East conflict persists, the greater the inflation risks become, particularly through energy prices and supply chain disruptions.

ECB's Lane Lays Out Case for June Hike Amid Global Energy Shock.ECB Chief Economist Philip Lane signaled on Wednesday that the Iran-related oil shock may require ECB tightening to prevent higher energy prices from spreading into wages, inflation expectations, and broader consumer prices. Speaking in London, Lane laid out the intellectual case for a likely June rate hike while acknowledging the Eurozone economy is already slowing under the weight of higher energy costs and weak demand.

BoE's Mann Warns Bond Market Fragility Matters for Future Rate Hikes.Bank of England policymaker Catherine Mann warned that future interest rate hikes could trigger larger-than-intended tightening in UK financial conditions because of growing fragility in Britain's gilt market. Speaking on Wednesday, Mann said the increasing role of hedge funds and overseas investors has made the market more sensitive to sudden shifts in sentiment, particularly during periods of political and economic uncertainty.

Xi is meeting with Trump, we should get some news in a few hours.In other events, Japan's government is considering extra budget, according to meida reports. Chief Cabinet Sec Kihara says no immediate need though.

Australian Dollar weakens to near 0.7250, Trump–Xi talks in focus.Australian Dollar weakens to near 0.7250, Trump–Xi talks in focus

UK GDP growth leap in Q1 may mask potential slowdown due to Iran war.UK GDP growth leap in Q1 may mask potential slowdown due to Iran war

Canadian Dollar moves little as traders adopt caution ahead of US-China summit.Canadian Dollar moves little as traders adopt caution ahead of US-China summit

Dollar boosted by rate expectations, safe-haven flows as Trump, Xi meet.The dollar got a lift from elevated U.S. ​Treasury yields on Thursday as investors wagered the Federal Reserve would hike rates this year, while an impasse between ‌the U.S. and Iran over the war in the Middle East drove more safe-haven flows.

Japanese Yen holds steady ahead of Trump–Xi summit, US Retail Sales data.Japanese Yen holds steady ahead of Trump–Xi summit, US Retail Sales data

WTI slips below $97.00 ahead of Trump-Xi meeting.WTI slips below $97.00 ahead of Trump-Xi meeting

Euro recovers above 1.1700 as ECB rate hike expectations counter stronger US PPI.Euro recovers above 1.1700 as ECB rate hike expectations counter stronger US PPI

Rupee slides to a fresh low for third straight day on oil hit.The Indian rupee hit a new all-time low for the third consecutive day, driven by soaring crude oil prices and increased dollar demand. Despite government efforts to curb gold imports, the rupee weakened significantly.

USD/JPY Forecast: Japan's Intervention Dilemma Deepens as Fed Outlook Shifts.USD/JPY is once again trading like a rates differential story, particularly at the front-end of the curve. The relationship reasserted itself aggressively following the latest hot US inflation data, helping to explain why the pair is once again pressing up against levels where suspected intervention from Japan's Ministry of Finance took place in recent weeks.

Japan Money Supply M2+CD (YoY) rose from previous 2% to 2.3% in April.Japan Money Supply M2+CD (YoY) rose from previous 2% to 2.3% in April

US President Donald Trump visits China against backdrop of Iran war.US President Donald Trump visits China against backdrop of Iran war

UK house prices fall at fastest pace since 2023 as Iran war hits sentiment.The RICS UK house price balance fell to -34 in April from -25 in March, the weakest reading since November 2023, as Iran war fallout and rising mortgage rate expectations weighed on buyer sentiment.

United Kingdom RICS Housing Price Balance registered at -34%, below expectations (-25%) in April.United Kingdom RICS Housing Price Balance registered at -34%, below expectations (-25%) in April

GBP/JPY Price Forecast: Clears 50-day SMA, yet flatlines below 214.00.GBP/JPY Price Forecast: Clears 50-day SMA, yet flatlines below 214.00

Pound Sterling reverses intraday gains as US PPI and UK political risk weighs.Pound Sterling reverses intraday gains as US PPI and UK political risk weighs

Markets climb wall of inflation worry as AI rally shrugs off the heat.Markets climb wall of inflation worry as AI rally shrugs off the heat

New Zealand Dollar gave back gains as hot US PPI offsets RBNZ expectations rise.New Zealand Dollar gave back gains as hot US PPI offsets RBNZ expectations rise

Australian Dollar retreats from session peak as US PPI print beats sharply.Australian Dollar retreats from session peak as US PPI print beats sharply

Brazil markets rattled by report linking Flavio Bolsonaro to disgraced banker.Brazilian financial markets reeled on Wednesday as traders pointed to a report ​alleging ties between Senator Flavio Bolsonaro and a scandal-plagued banker, ‌with some speculating it could tip the balance of a close presidential race.

Thailand: Targeted subsidies with low debt risk – BNP Paribas.Thailand: Targeted subsidies with low debt risk – BNP Paribas

US Dollar Rebound Falters, But May Seasonality Remains Supportive.The US dollar posted its strongest 2-day rally in six weeks following the US CPI report, although fading momentum across several FX majors suggests the rebound may soon pause. Still, historically bullish May seasonality for the DXY keeps the prospect of another push towards 99 alive.

Rubio wants to China to come to the rescue in Iran war.In a Fox interview Rubio said he hopes to convince China to play a more active role in trying to convince Iran to walk away from what they are doing in the Gulf -

Singapore Dollar: Consolidation with preference to sell rallies – OCBC.Singapore Dollar: Consolidation with preference to sell rallies – OCBC

Fed's Collins expects inflation pressures from Iran war to eventually subside, WSJ reports.Boston Federal Reserve President ​Susan Collins told ‌the Wall Street Journal ​on Wednesday ​that she expects inflation ⁠pressures from ​the Iran war ​to eventually subside and that the ​current shock ​has masked evidence that ‌underlying ⁠inflation is still headed down.