The euro is under mild pressure after a weaker-than-expected German ZEW survey weighed on sentiment. ECB Vice President-designate Vujčić noted the euro has an opportunity to expand its global role as confidence in the dollar is reassessed, though structural limitations remain. Near term, the euro’s direction will be driven mainly by USD moves and incoming eurozone inflation data, including France’s final January CPI release later today.

USDJPY is trying to reverse Tuesday’s modest dip but still trading near last week’s roughly two-week low of 152.24. Japan’s January trade data showed exports jumping 16.8% year-over-year—the strongest increase in more than three years—driven by solid demand from Asia and Europe and some pre-Lunar New Year shipments, while weaker imports helped narrow the trade deficit. Although the strong export performance points to improving growth momentum, USD strength and higher US yields remain the key drivers. Continued gains in US yields could push USDJPY back toward the mid-154s, while a shift toward risk aversion or changing BoJ expectations would be needed to drive the pair back toward 152.

The Australian dollar is trading with a softer tone today. Earlier, RBA meeting minutes struck a more cautious tone, highlighting a data-dependent approach and balanced risks, even as officials acknowledged rising concerns around inflation and the labor market before the last rate hike. Despite the recent dip, the currency remains up 6.2% year-to-date, supported by the RBA’s hawkish stance and ongoing focus on wage pressures, especially in services. Attention now turns to Thursday’s employment report, which is expected to show a 20,000 increase in jobs and a slight rise in unemployment to 4.2%.