EUR/USD drops over 0.49% on Wednesday as the minutes of the Federal Reserve hinted the central bank could skip an interest rate cut at the December meeting, according to October’s meeting minutes. The pair trades at 1.1524, after hitting a daily low shy of 1.1600.

The Canadian Dollar (CAD) weakens against the US Dollar (USD) on Wednesday, with USD/CAD erasing all of Tuesday’s losses as broader Greenback strength weighs on the Loonie.

NZD/USD trades around 0.5600 at the time of writing on Wednesday, down 1.10% on the day, hitting a new eight-month low as disappointing New Zealand data and a broader deterioration in risk sentiment weigh heavily on the currency.

Russia Producer Price Index (YoY) increased to 0.7% in October from previous -0.4%

Russia Producer Price Index (MoM) up to 0.9% in October from previous 0.5%

USD/JPY extends its upward trajectory on Wednesday, with the pair surging to levels last seen in mid-January.

The GBP/USD edges modestly lower on Wednesday as inflation in the UK ticked lower in October, increasing the chance of a possible interest rate cut by the Bank of England (BoE). At the time of writing, the pair trades at 1.3120 after reaching a peak of 1.3154.

The Euro (EUR) pares back early strength against the British Pound (GBP) on Wednesday as traders digest a fresh round of inflation data from both the United Kingdom and the Eurozone. At the time of writing, EUR/GBP is trading around 0.8817, retreating from an intraday high near 0.8839.

The Pound Sterling (USD) is soft, down a modest 0.2% against the US Dollar (USD) and a midperformer among the G10 in an environment of broad USD strength, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

The Euro (EUR) is entering Wednesday’s NA session flat against the US Dollar (USD) as it outperforms all of the G10 currencies in an environment of broad-based USD strength, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

The Canadian Dollar (CAD) is little changed on the session as spot remains anchored around the 1.40 point, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

USD/CHF trades higher on Wednesday, around 0.8020 at the time of writing, rising 0.30% on the day. The pair extends its rebound from last week’s one-month low near 0.7880, supported by a combination of fundamental drivers.

GBP/JPY advances for a third consecutive day on Wednesday, with the British Pound finding support from persistent weakness in the Japanese Yen, offsetting the softer-than-expected UK inflation data.

EUR/JPY trades around 180.90 at the time of writing, up 0.45% on the day, reaching a new multi-year high amid intensifying pressure on Japanese government Bonds.

The risk-sensitive Kiwi Dollar is one of the worst performers on Wednesday amid the sour market sentiment and disappointing New Zealand data. The NZD retreated nearly 0.5% on the day against the US Dollar, reaching session lows at 0.5625, a few pips above the seven-month low of 0.5605. 

The USD/JPY pair extends its rally to near 156.20 during the European trading session on Wednesday. The pair strengthens as the Japanese Yen (JPY) declines sharply amid surging yields on Japan Government Bonds (JGBs), following hopes that the administration will announce bigger economic stimulus.

AUD/USD is trading just above its 200-day moving average, weighed by broad US dollar strength. Australia’s Q3 wage growth, in line with expectations, supports the Reserve Bank of Australia’s decision to keep rates on hold, BBH FX analysts report.

USD/JPY is climbing to fresh multi-month highs as long-term Japanese government bond yields rise on fiscal concerns and a worsening Japan-China diplomatic spat, BBH FX analysts report.

GBP/USD is edging lower as October UK CPI data leave room for the Bank of England to resume easing at its December 18 meeting, BBH FX analysts report.

New Zealand Dollar (NZD) appears to have entered a sideways-trading phase between 0.5640 and 0.5680. In the longer run, no change in view; NZD is likely to trade in a range between 0.5605 and 0.5695, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

AUD/USD trades lower around 0.6480 on Wednesday, down 0.40% at the time of writing. The Australian Dollar (AUD) is losing ground against the US Dollar (USD), pressured by a sharp deterioration in global risk sentiment.

The US Dollar is trimming some losses against its Canadian Counterpart on Wednesday and trades right at the 1.4000 level, after bouncing from lows near 1.3970 on Tuesday.

Eurozone Core Harmonized Index of Consumer Prices (MoM): 0.3% (October)

Eurozone Core Harmonized Index of Consumer Prices (YoY) meets forecasts (2.4%) in October

Eurozone Harmonized Index of Consumer Prices (YoY) meets expectations (2.1%) in October

Eurozone Harmonized Index of Consumer Prices (MoM) in line with forecasts (0.2%) in October

Instead of continuing to weaken, Australian Dollar (AUD) is more likely to trade in a range between 0.6485 and 0.6530. In the longer run, AUD is likely to trade with a downward bias toward 0.6460, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

The Euro shows moderate gains at levels near 0.8820 on Wednesday, favoured by broad-based GBP weakness following softer UK inflation data. The pair, however, remains wavering within previous ranges, with the long wicks in the daily chart's candles, highlighting a hesitant market.

NZD/USD depreciates more than 0.5% after registering modest gains in the previous session, trading around 0.5630 during the European hours on Wednesday. The daily chart’s technical analysis signals a persistent bearish bias as the pair price remains within the descending channel pattern.

Pound Sterling (GBP) is expected to trade between 1.3125 and 1.3175. In the longer run, upward momentum is starting to slow; a breach of 1.3105 would indicate that GBP is likely to range-trade, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.