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US Treasury yields soared on Wednesday as a weaker-than-expected 20-year US bond auction ahead of the vote on the US budget in the US Congress. At the time of writing, the US 10-year T-note benchmark note surges 11 basis points at 4.601%.

EUR/USD extended its rally for the third consecutive day on Wednesday as the US Dollar (USD) continued to face headwinds following the credit downgrade of the United States last Friday.

The United States (US) House of Representatives is poised to begin casting votes on the Republican party's tax and budget bill that is front-loaded with many of President Donald Trump's wishlist items.

Oil prices have been under persistent pressure since the inauguration of US President Donald Trump in January, weighed down by a combination of recession fears, rising global supply, and a softer US Dollar. 

The Canadian Dollar (CAD) caught a firm bid on Wednesday, climbing one-half of one percent during the midweek market session.

The US Dollar (USD) maintained its weekly leg lower well in place weakening to new two-week lows on the back of rising concerns over the US fiscal position in light of President Trump’s tax bill and worries over the performance of the US economy.

The Dow Jones Industrial Average (DJIA) recoiled on Wednesday, tumbling 800 and testing below 42,000 after demand for United States (US) Treasuries declined.

Gold prices advance by over 0.50% and remain above the $3,300 mark as traders grow increasingly nervous about the United States (US) tax bill vote, along with escalating tensions in the Middle East. XAU/USD trades at $3,307 after bouncing off a daily low of $3,285.

United States 20-Year Bond Auction climbed from previous 4.81% to 5.047%

The Pound Sterling rose to a new year-to-date (YTD) high of 1.3468 against the US Dollar on Wednesday as UK inflation rose, drifting away from the Bank of England's (BoE) 2% target, which had led to interest rate reductions earlier in the month.

The New Zealand Dollar (NZD) continues to strengthen against the US Dollar (USD) on Wednesday, with the release of a record trade surplus in April highlighting the largest monthly goods surplus on record with the United States.

Silver price (XAG/USD) hits a fresh weekly high to near $33.20 during North American trading hours on Wednesday. The white metal strengthens as the US Dollar (USD) extends its downside on the United States (US) credit rating erosion in the wake of large debt levels and escalated fiscal imbalances.

United States EIA Crude Oil Stocks Change registered at 1.328M above expectations (-1.85M) in May 16

German Chancellor Friedrich Merz said on Wednesday that there are signs that the United States (US) could be interested in having a trade deal with the European Union (EU), per Reuters.

The EUR/JPY pair edges down to near 162.90 during North American trading hours on Wednesday. The cross ticks lower as the Japanese Yen (JPY) outperforms across the board, with investors remaining increasingly confident that the Bank of Japan (BoJ) will raise interest rates again this year.

The US Dollar (USD) continues to weaken against the Japanese Yen (JPY), as shifting economic conditions and central bank outlooks reshape expectations for both currencies. 

Canada New Housing Price Index (YoY) fell from previous 0.1% to -0.6% in April

Canada New Housing Price Index (MoM) registered at -0.4%, below expectations (0.1%) in April

The Canadian Dollar (CAD) strengthens further against the US Dollar (USD) on Wednesday, marking a three-day rally, with USD/CAD slipping below 1.3900 as markets digest stronger-than-expected Canadian inflation figures and a broadly subdued Greenback.

Japanese Yen (JPY) is entering Wednesday’s NA session with an impressive 0.4% gain vs. the US Dollar (USD), a mid-performer among the G10 in an environment of broad-based USD weakness, Scotiabank's Chief FX Strategist Shaun Osborne notes.