USD/JPY Rises Again: Dollar Strong, Inflation Risks High.USD/JPY rose to 159.19, with the yen remaining near its one-month lows following comments from Bank of Japan Governor Kazuo Ueda. The regulator warned of rising inflation risks but did not provide any clear signals regarding a potential rate increase at the next BoJ meeting.

Australian Dollar: Peak risk builds against NZD – Societe Generale.Australian Dollar: Peak risk builds against NZD – Societe Generale

Rupee edges up as oil slips, markets eye US-Iran talks.The Indian Rupee (INR) traded marginally higher against the US Dollar (USD) in early trade on Wednesday as falling crude oil prices supported sentiment for the domestic currency. The USD/INR pair slipped toward 95.70 after oil prices failed to sustain Tuesday's recovery amid continued optimism surrounding a possible agreement between the United States and Iran.

Fed's Kashkari Warns of Rising Inflation Risks, But Says It's Too Soon to Predict Rate Hike.Minneapolis Fed President Neel Kashkari warned that inflation risks are becoming increasingly concerning as the Middle East conflict continues pushing energy and supply-chain costs higher across the global economy. Speaking in Tokyo, Kashkari said “most of the data has said the inflationary risks are higher, not lower.

New Zealand Dollar: Hawkish RBNZ shift supports NZD – Standard Chartered.New Zealand Dollar: Hawkish RBNZ shift supports NZD – Standard Chartered

First Light News – Ceasefire in Name Only: Strikes Resume in the Gulf.The Middle East conflict remains the key driver of market sentiment, with the Strait of Hormuz effectively closed and tanker traffic at a fraction of its pre-war levels.

Geopolitical Risks Support the Dollar Ahead of Fresh US Data.At the start of the week, the US currency continues to trade near significant levels amid ongoing uncertainty surrounding negotiations between the United States and Iran. Markets are closely monitoring reports suggesting a possible prolongation of the negotiation process and an increased US military presence in the Middle East, both of which are supporting demand for safe-haven assets, including the dollar.

British Pound remains firm against yen amid Strait of Hormuz concerns.The GBP/JPY cross attracted dip-buyers on Wednesday after pulling back modestly from the 214.65-214.70 region, which marked a fresh monthly high in the previous session. The currency pair maintained slight intraday gains during the early European session and traded around the 214.35-214.40 zone, up nearly 0.10% on the day.

Euro hits fresh monthly highs with Japanese Yen weakness raising intervention concerns.Euro hits fresh monthly highs with Japanese Yen weakness raising intervention concerns

Global Market Wrap: Semiconductors Surge, Oil Prices and Yields Stay in Focus.There is a growing sense across markets that investors are becoming increasingly comfortable trading through geopolitical risk rather than reacting aggressively to every new headline, although that confidence continues to be tested by developments surrounding Iran, oil flows and rising global bond yields. Crude markets remain central to.

Australian Dollar: Softer CPI backs RBA pause – Commerzbank.Australian Dollar: Softer CPI backs RBA pause – Commerzbank

British Pound remains close to monthly peak vs Japanese Yen amid Mideast tensions.British Pound remains close to monthly peak vs Japanese Yen amid Mideast tensions

French consumer sentiment slumps further in May, falling to lowest since March 2023.French consumer confidence tumbled lower in the latest month to 82, that being the weakest such reading since March 2023. Since the start of the US-Iran conflict, consumer confidence has fallen by 9 points in the past three months.

Fed's Kashkari: Risk to US inflation now higher than risk of deterioration in labour market.Fed's Kashkari: Risk to US inflation now higher than risk of deterioration in labour market

Swiss Franc: Intervention stance offsets safe-haven appeal – Rabobank.Swiss Franc: Intervention stance offsets safe-haven appeal – Rabobank

AUD/JPY Price Forecast: Declines on softer Australia's CPI, but broader bullish trend remains intact.AUD/JPY Price Forecast: Declines on softer Australia's CPI, but broader bullish trend remains intact

France Consumer Confidence registered at 82, below expectations (85) in May.France Consumer Confidence registered at 82, below expectations (85) in May

New Zealand Dollar: Hawkish RBNZ repricing path – Commerzbank.New Zealand Dollar: Hawkish RBNZ repricing path – Commerzbank

Upward Pressure on Swedish PPI Continues.In New Zealand, the Reserve Bank decided to maintain its cash rate at 2.25%, in line with market expectations. Despite holding rates steady, policymakers signalled that they will most likely need to increase rates sooner than envisaged in the February Monetary Policy Statement, with revised forecasts implying at least two more hikes by the end of the year.

Pound-to-Euro Forecast: GBP Steady Despite Improved UK Retail Survey.The Pound to Euro (GBP/EUR) exchange rate traded in a narrow range on Tuesday as a lack of major economic releases left the pairing struggling to establish clear direction amid heightened geopolitical uncertainty. At the time of writing, GBP/EUR was trading around €1.1580, down approximately 0.15% on the day.

US and Iran know what the puzzle pieces are, but can they fit them all together?.For a few days, the talk of the town is an imminent "deal" between the US and Iran. One that is labelled as a "deal to put an end to the conflict".

Review of RBNZ: Waiting for Evidence.As widely expected, the RBNZ held the OCR at 2.25% and a vote was required to determine the outcome. Also as expected, the RBNZ's revised projections include a pulling forward of the timing of projected policy tightening.

Japanese Yen languishes near four-week low vs USD as Iran risks counter intervention fears.Japanese Yen languishes near four-week low vs USD as Iran risks counter intervention fears

A more tepid mood set to greet European traders awaiting further US-Iran developments.Despite some escalation in military actions in the past day, markets are still holding out hope that we will see a US-Iran "deal" come forth this week.

WTI slumps below $91.00 on US–Iran peace progress while fresh strikes cloud outlook.WTI slumps below $91.00 on US–Iran peace progress while fresh strikes cloud outlook

Morning Bid: Markets cheer, central banks warn.A look at the day ahead in European and global markets from Rocky Swift

First Impressions – Australia April CPI.The April CPI rose 0.4%mth to be up 4.2%yr. This represents a moderation from the 4.6%yr pace recorded in March and came in below Westpac's near-cast of 0.9%mth/4.8%yr and market expectations of 4.4%yr.

Swiss Franc edges higher as fading risk aversion weighs on USD.Swiss Franc edges higher as fading risk aversion weighs on USD

WTI Crude Oil Finds Stability Above Support, Upside Risks Reemerge.WTI Crude Oil prices declined heavily below $105 and $102 against the US Dollar. The price even dipped below $100 before the bulls stepped in.

RBNZ Delivers Hawkish Hold as Split Vote Signals Rate Hikes Coming Soon.The Reserve Bank of New Zealand left the Official Cash Rate unchanged at 2.25% today, but the decision delivered a distinctly hawkish message as policymakers signaled that rate hikes are likely coming sooner and more aggressively than previously expected. In a major surprise, the Monetary Policy Committee split evenly 3-3, forcing Governor Anna Breman to use her casting vote to keep rates on hold.