ING’s Chris Turner relays UK economist James Smith’s view that underlying United Kingdom (UK) inflation is moving in the right direction despite slightly higher core data. Falling food and petrol prices and softer core services inflation suggest domestically generated inflation is benign.
The Japanese Yen (JPY) hovers near a multi-decade high at around 163.24 against the US Dollar (USD) during the early European trading session on Wednesday. The USD/JPY pair reflects significant strength as the Japanese currency underperforms due to surging Oil prices.
Gold (XAU/USD) rallies to an over two-week high, around the $4,140-$4,141 area, during the Asian session on Wednesday amid hopes that US-Iran diplomacy could ease energy prices and temper hawkish US Federal Reserve (Fed) expectations.