DBS Group Research’s Philip Wee notes that the US Dollar (USD) has strengthened, with the US Dollar Index (DXY) at its highest since May 2025 after a hawkish Federal Open Market Committee (FOMC).
The British Pound (GBP) trades 0.38% lower at around 1.3150 against the US Dollar (USD) during the European trading session on Wednesday. The GBP/USD pair faces intense selling pressure as the US Dollar outperforms due to hawkish Federal Reserve (Fed) bets.
United States MBA Mortgage Applications: 1% (June 19) vs -3.8%
Gold (XAU/USD) extends losses for the second consecutive day on Wednesday as the US Dollar Index (DXY) surges to 13-month highs near 102.00. The precious metal has breached the 4,100 line and is heading to retest Year-to-date lows, at $4,023, and probably also the $4,000 psychological level.
ING’s Francesco Pesole highlights that EUR/USD has been pressured by an equity sell-off and weak German PMIs, reinforcing a US-EU growth divergence narrative. He notes a wider EUR:USD two-year swap differential and a renewed Dollar risk premium.
The comments from Swiss National Bank (SNB) policymaker Petra Tschudin released during the European trading session on Wednesday indicate that medium-term inflation pressures remain unchanged and the central bank is ready to intervene in the FX market if necessary.
Discussions on the future of the Strait of Hormuz could soon gain momentum. According to Reuters, Qatar's Prime Minister is in Muscat on Wednesday to initiate, alongside Oman, a dialogue process involving Iran, the Gulf states and Iraq on the reopening and future operation of the strategic waterway.
The Indian Rupee (INR) trades lower against the US Dollar (USD) on Wednesday, with the USD/INR pair rising to near 94.85. The pair gains as the US Dollar posts a fresh annual high amid firm expectations that the Federal Reserve (Fed) will deliver at least two interest rate hikes this year.
Silver (XAG/USD) nurses marginal losses, trading a few cents above the $61.00 level on Wednesday’s European trading session.
MUFG’s Lee Hardman notes that EUR/USD has broken below its long-held 1.1400–1.1800 range as diverging ECB and Fed policy expectations weigh on the Euro. Softer Euro-zone data and easing energy prices are reducing pressure on the ECB to hike further, while the Fed is priced for multiple hikes.
Societe Generale analysts note AUD/USD remains under pressure, converging on the 0.69 area and the March–April trough near 0.6833, despite a sharp tightening in the 2‑year spread to 39bp.
EUR/JPY edges lower on Wednesday, trading around 183.55 at the time of writing, down 0.17%, as investors assess the impact of improving economic sentiment in Germany against rising intervention risks in Japan’s foreign exchange market.
