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Banxico Deputy Governor urges caution on rate cuts amid sticky inflation
Banco de Mexico (Banxico) Deputy Governor Jonathan Heath crossed the newswires in a podcast by Grupo Financiero Banorte on Wednesday.

GBP/USD climbs as Bessent softens US stance, Powell's dovish tilt
The Pound Sterling recovers some ground, advances 0.60% on Wednesday during the North American session as Sino-US tensions eased on comments of US Treasury Secretary Scott Bessent. The GBP/USD trades at 1.3396 after bouncing off daily lows of 1.3309.

AUD/USD rises as RBA flags inflation risks, Fed dovishness weighs on USD
AUD/USD advances by 0.40% to trade around 0.6510 on Wednesday at the time of writing. The Australian Dollar (AUD) gains ground after Sarah Hunter, Assistant Governor of the Reserve Bank of Australia (RBA), warned on Wednesday that inflation risks in the economy remain tilted to the upside.

Euro holds ground as trade tensions and Fed easing outlook weigh on the Greenback
The Euro (EUR) is holding firm against the US Dollar (USD) on Wednesday, with EUR/USD attempting to extend its recovery for a second consecutive session as the Greenback comes under modest pressure amid escalating US-China trade war and firm expectations of further interest rate cuts by the Federal

Fed's Miran: The economy is more vulnerable to shocks because policy is restrictive
Federal Reserve Governor Stephen Miran spoke at a televised interview on CNBC on Wednesday. He said that there is now more downside risk than there was a week ago, and that with the shift in the balance of risk, it is more urgent to move towards a more neutral policy.

US Treasury's Bessent: We don't want to decouple from China
United States (US) Treasury Secretary Scott Bessent said on Wednesday that China was planning to erect new trade barriers and added that they don't want to escalate, per Reuters.

Fed Watch: Frontloaded easing increases inflation risks - ABN AMRO
Yesterday, Federal Reserve Chair Powell spoke at the National Association for Business Economics annual meeting. He stated that the economic outlook appeared unchanged since the FOMC last met in September.

JPY extending Friday's bullish reversal - Scotiabank
The Japanese Yen (JPY) is up 0.3% against the US Dollar (USD) and a relative performer among the G10, extending Friday's bullish outside reversal with an impressive recovery from its 8 month lows, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

GBP a mid-performer on broader USD - Scotiabank
The Pound Sterling (GBP) is up 0.2% against the US Dollar (USD) and a mid-performer among the G10, its gains reflecting a weaker USD rather than any improvement in the UK's domestic situation, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

EUR up modestly but lagging most G10 currencies - Scotiabank
The Euro (EUR) is up a modest 0.2% against the US Dollar (USD) but lagging most of the G10 currencies in an environment of broad-based USD weakness, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

CAD steadies, remains heavily undervalued - Scotiabank
The Canadian Dollar (CAD) is all but unchanged in quiet trade.

USD edges lower on Powell comments - Scotiabank
The US Dollar (USD) is tracking lower overall for a second day, reflecting dovish comments from Fed Chair Powell yesterday and some stabilization in risk appetite after the recent wobble in sentiment.

BoE policy bets steady as November cut expectations fade - Rabobank
As has been the case since August, the market no longer expects the BoE to cut rates at the November policy meeting. Currently market implied policy rates suggest that 2 bps of easing is expected on a 1-month view and 12 bps in 3 months, Rabobank's FX analyst Jane Foley reports.

USD/JPY may edge lower and test 151.20 - UOB Group
US Dollar (USD) may edge lower and test 151.20; a continued decline below this level is unlikely. In the longer run, the current price movements are likely the early stages of a 149.50/153.00 range-trading phase, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

EUR/JPY declines as Yen strengthens on trade tensions, Eurozone political uncertainty
EUR/JPY trades lower around 176.00, down 0.13% for the day at the time of writing on Wednesday, as safe-haven flows continue to boost the Japanese Yen (JPY). The currency benefits from defensive demand amid escalating geopolitical tensions and persistent political instability in Europe.

USD/CAD Price Forecast: Sets for fresh rally above 1.4080
The USD/CAD pair ticks down to near 1.4040 on Wednesday. The Loonie pair is marginally down during the European trading session even as the US Dollar has declined, suggesting that the Canadian Dollar (CAD) is also weak.

GBP/JPY Price Forecast: Pound returns above 202.00 on risk-on markets
The British Pound is posting moderate gains on Wednesday, as a mild appetite for risk and ongoing political uncertainty in Japan weigh on the Japanese Yen. The Pair has returned beyond the 202.00 level, after bouncing from 201.35 lows on Tuesday.

NZD/USD: Chance for NZD to test 0.5660 - UOB Group
New Zealand Dollar (NZD) is likely to range-trade between 0.5690 and 0.5730. In the longer run, there is a chance for NZD to test 0.5660 before the risk of a stronger recovery increases, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

USD: Powell confirms what's largely priced - MUFG
The US Dollar (USD) has weakened a little further during the Asian trading session following the selling yesterday helped by growing optimism in France that PM Lecornu has done enough to avoid defeat in a government no-confidence motion and more importantly in response to comments from Fed Chair Pow

AUD/USD: Chance for AUD to test 0.6440 - UOB Group
Australian Dollar (AUD) is likely to range-trade between 0.6460 and 0.6520. In the longer run, further declines in AUD still appear likely; the next level to watch is 0.6440, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
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