The US Dollar Index (DXY) trades near 101.60 on Wednesday, at a one-year high as markets looked ahead to Thursday’s United States (US) Personal Consumption Expenditures Price Index (PCE), the Federal Reserve’s (Fed) preferred inflation gauge.
Scotiabank strategists Shaun Osborne and Eric Theoret note the US Dollar (USD) is strengthening on a higher-for-longer Federal Reserve (Fed) outlook, some haven demand and mixed global equities. US Dollar Index (DXY) is pushing toward 102, with stronger resistance seen in the upper 102 area.
Lloyd Chan at MUFG argues that Thai Baht (THB) weakness, despite lower Oil prices, reflects its low-yield profile and the Bank of Thailand’s (BoT) growth-focused stance, which limits tightening scope.
Societe Generale’s Emerging Markets (EM) strategists say the Brazilian central bank, Banco Central do Brasil (BCB) minutes support an easing cycle with pauses to guide inflation back to 3% by 1Q28, leaving USD/BRL approaching its 200‑day moving average at 5.25.
West Texas Intermediate (WTI) crude Oil extends its decline on Wednesday, falling more than 3% as stranded crude cargoes in the Strait of Hormuz gradually return to the market following an interim peace agreement between the United States (US) and Iran.
USD/CAD climbs to fresh highs since April 2025 on Wednesday as the Canadian Dollar (CAD) faces a double blow from a stronger US Dollar (USD) and weaker Oil prices.
European Central Bank (ECB) Executive Board member Isabel Schnabel said on Wednesday that from the present perspective, further interest rate hikes are needed to bring inflation back to the central bank’s 2% target.
Silver (XAG/USD) extends its correction on Wednesday and trades around $58.75 at the time of writing, down 4.62% on the day after hitting a fresh low not seen since December 2025.
BNY’s Geoff Yu highlights that IMM volume is concentrated in commodity currencies, with AUD, NZD and NOK leading recent adjustments. NOK and CAD are seeing outflows linked to Oil sensitivity and modest Norges Bank tightening expectations, while NZD and AUD have underperformed since May.
The GBP/JPY cross came under pressure near the 213.00 level on Wednesday as the British Pound weakened after United Kingdom (UK) Prime Minister Keir Starmer announced he would stand down as Labour Party leader and Prime Minister.
United States 5-Year Note Auction: 4.2% vs 4.182%
Standard Chartered’s Saabir Salad emphasizes that subdued inflation, aided by a strong Hungarian Forint (HUF) and government measures, has allowed the National Bank of Hungary (NBH) to turn more dovish.
