The dollar is extending its recent weakness against its major competitors on Wednesday. The U.S. currency declined yesterday, after the Bank of Japan decided not to expand its stimulus measures and upgraded its view of the economy. Investors will be watching for the release of a large number of U.S. economic reports over the next two sessions.
The Bank of Japan on Tuesday decided to retain its target of doubling the monetary base in two years, but stopped short of announcing any new steps to curb bond market volatility. Meanwhile, the central bank upgraded its view of the economy.
The BoJ said its money market operations will continue to target an expansion of monetary base at an annual pace of JPY 60-70 trillion, as announced in April. The decision to keep the easing plan intact was unanimous.
The dollar climbed to an early high of Y97.010 against the Japanese Yen on Wednesday, but has since pulled back to around Y95.650, near yesterday's low.
Core machine orders in Japan plunged a seasonally adjusted 8.8 percent on month in April to 723.3 billion yen, the Cabinet Office said on Wednesday - falling for just the second time in seven months. The headline figure missed forecasts for a contraction of 8.1 percent following the 14.2 percent surge in March.
Germany's court in Karlsruhe is holding a two-day hearing to decide whether the ECB's bond buying program called the Outright Monetary Transactions (OMT) violates the German law.
European Central Bank Executive Board member Joerg Asmussen on Wednesday warned against discussions on altering the EU treaty as well as the central bank's mandate to secure price stability.
The buck rose to an early high of $1.3264 against the Euro on Wednesday, but has since fallen to nearly a 4-month low of $1.3358.
Industrial production in the euro area increased in April, defying economists' forecast for stagnation, but the rate of growth was weakened by lower output of energy and durable consumer goods. Yet, the data has given rise to fresh hopes that the region is slowly emerging from its long-drawn recession.
Seasonally adjusted industrial production rose 0.4 percent sequentially in April, statistical office Eurostat said Wednesday. Production was forecast to remain unchanged after gaining a revised 0.9 percent in March.
Germany's EU harmonized inflation accelerated in May, but to a lesser extent than initially estimated, final data released by the Federal Statistical Office showed Wednesday. Inflation as per the harmonized index of consumer prices (HICP) rose to 1.6 percent in May from 1.1 percent in April. The flash estimates were for an inflation rate of 1.7 percent.
France's EU harmonized inflation picked up slightly in May, but was at the lowest level in three-and-half years, data released by statistical office Insee showed Wednesday. Inflation as per the harmonized index of consumer prices (HICP) moved up to 0.9 percent in May from 0.8 percent in April, in line with market expectations. The latest figure was the lowest since November 2009, when the HICP rose by 0.5 percent.
French payroll employment decreased 8,300 in the first quarter compared to a sharp 41,200 decline in the previous quarter, figures published by the statistical office Insee revealed Wednesday.
The French current account deficit remained at EUR 2.8 billion in April, the Bank of France reported Wednesday.
UK's economy remains vulnerable to risks despite recent economic data indicating a strong pickup in activity, Bank of England policymaker Paul Fisher said Wednesday. He cautioned that growth will likely remain weak in the near term and the economy will take a longer time to recover than the United States.
Dismissing the recent positive economic data as insignificant, BoE's head of markets noted that it is imperative to keep monetary policy loose for a long period to achieve growth that is in line with trend.
The greenback began Wednesday's session around the $1.5650 level against the pound sterling, but has since retreated to a 4-month low of $1.5699.
A bigger-than-expected decline in jobless claims as well as a fall in unemployment indicates that the U.K. economy is recovering as suggested by recent economic data. The number of people claiming unemployment benefits decreased by 8,600 in May from April, the Office for National Statistics reported Wednesday. It was sharper than the expected drop of 5,000.
The number of unemployed decreased by 5,000 in the three months through April to 2.51 million, leaving the jobless rate at 7.8 percent. The rate also matched economists' expectations.
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Market Analysis
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.