Commerzbank’s Dr. Ralph Solveen notes that Germany’s Ifo Business Climate Index rose slightly in June, mainly on a better assessment of current conditions rather than expectations.
United States EIA Crude Oil Stocks Change came in at -6.088M, below expectations (-5.1M) in June 19
Scotiabank strategists Shaun Osborne and Eric Theoret highlight renewed Euro (EUR) weakness versus the Dollar (USD), driven by widening negative Eurozone–US yield spreads and a hawkish repricing of Fed expectations while European Central Bank (ECB) views stay steady.
West Texas Intermediate (WTI) US Oil extends its sharp decline on Wednesday, trading around $69.70, down 4.40% on the day at the time of writing and hitting its lowest level since March 2.
ING’s Francesco Pesole says AUD/USD remains under pressure from the tech-led equity sell-off, given the Australian Dollar’s high correlation with semiconductor stocks. Domestically, hotter core inflation should keep Reserve Bank of Australia communication hawkish, even without further hikes.
United States New Home Sales (MoM) came in at 0.58M below forecasts (0.64M) in May
GBP/JPY trades on the back foot on Wednesday as the Japanese Yen (JPY) outperforms its major peers following hawkish signals from the Bank of Japan (BoJ). At the time of writing, the cross is trading around 212.90, down 0.20%.
United States New Home Sales (MoM) above forecasts (0.64M) in May: Actual (580M)
BNY’s Geoff Yu observes that recent US Dollar (USD) strength reflects United States (US) exceptionalism rather than fresh cross-border buying, as underweights have already been reduced.
TD Securities’ Ryan McKay and Bart Melek highlight ongoing selling pressure in WTI Crude as CTA liquidation nears completion while high crude flows through the Strait of Hormuz keep sentiment bearish.
Scotiabank strategists Shaun Osborne and Eric Theoret note USD/CAD continues its grind higher, with the Canadian Dollar (CAD) in a near straight-line decline since early May as wider US–Canada yield spreads drive weakness.
Societe Generale analysts note that EUR/USD has traded mostly between 1.14 and 1.20 over the past year, with low volatility magnifying even small breakouts.
