EUR/JPY extends its gains for the third successive day, trading around 185.40 during the Asian hours on Wednesday. The currency cross is retaining a mildly bullish tone as it holds above both the nine-period and 50-period Exponential Moving Averages (EMAs).

The NZD/USD pair trades in positive territory around 0.5825 during the Asian trading hours on Wednesday. The New Zealand Dollar (NZD) remains firm against the US Dollar (USD) after the Chinese economic data.

AUD/USD extends its gains for the second successive day, trading around 0.6980 during the Asian hours on Wednesday. The pair holds gains as the Australian Dollar (AUD) remains stronger following the release of key economic data from China, Australia’s close trading partner.

The USD/CAD pair remains under some selling pressure for the second straight day and drops to a four-week low, around the 1.4045-1.4040 region during the Asian session on Wednesday.

South Korea Trade Balance declined to $36.09B in June from previous $36.14B

Silver price (XAG/USD) inches lower after registering gains in the previous day, trading around $58.50 per troy ounce during the Asian hours on Wednesday.

The GBP/USD pair gains ground to near 1.3405 during the early Asian session on Wednesday. The US dollar (USD) weakens against the British Pound (GBP) as softer-than-expected US inflation in June tempered expectations for US Federal Reserve (Fed) policy tightening.

The USD/JPY pair struggles to capitalize on the previous day's late rebound from the vicinity of mid-161.00s, or the weekly low, and trades with a mild negative bias for the second straight day on Wednesday.

On Wednesday, the People’s Bank of China (PBOC) sets the USD/CNY central rate for the trading session ahead at 6.7910 compared to the previous day's fix of 6.7990 and 6.7695 Reuters estimate.

The EUR/USD pair gains ground to near 1.1425 during the early Asian trading hours on Wednesday. The US Dollar (USD) weakens against the Euro (EUR) as softer-than-expected US inflation data temporarily eased pressure on the Federal Reserve (Fed).

South Korea Unemployment Rate declined to 2.7% in June from previous 2.8%

The New Zealand Dollar extended its rally, registering solid gains versus the US Dollar after the latest US inflation report, which tempered speculation of a Fed rate hike and trimmed investors' bets by half. At the time of writing, the NZD/USD is trading at 0.5809, up by more than 1%.

Cable trades just beneath the 1.3400 handle late in Tuesday's session, pinned under a 200-day Exponential Moving Average (EMA) that sits a few pips shy of the figure and has capped every recovery attempt for two weeks.

The British Pound registers gains against the Japanese Yen on Tuesday, rising by over 0.12% to 217.04, with the cross-pair poised to test the year-to-date (YTD) high of 218.01.

The USD/CHF tumbles by 0.70% on Tuesday, trading at 0.8091, as the latest US inflation report prompted market participants to pare hawkish bets that the Federal Reserve might cut the Fed funds rate this year. 

The Japanese Yen registers gains of over 0.31% against the US Dollar as traders trim hawkish bets following a softer-than-expected US inflation report. The USD/JPY trades at 161.93 after reaching a daily high of 162.48.

AUD/USD trades sharply higher near 0.6990 on Tuesday, approaching the psychological 0.7000 level as the US Dollar (USD) falls following weaker-than-expected United States (US) inflation figures.

The Canadian Dollar (CAD) strengthens sharply against the US Dollar (USD) on Tuesday, drawing support from softer-than-expected US inflation data and rising Oil prices amid escalating tensions in the Middle East.

NZD/USD jumps to a one-month high on Tuesday as traders digest the latest US inflation data, which came in softer than expected and reduced expectations of an imminent Federal Reserve (Fed) interest rate hike. At the time of writing, the pair trades around 0.5820, up nearly 1.23% on the day.

The Japanese Yen (JPY) continues to trade in defensive territory, with the USD/JPY pair pinned near a historic 40-year high around 162.00. However, in a striking divergence from rising global yields, Japanese Government Bonds (JGBs) have begun outperforming. 

The British Pound (GBP) strengthens against the US Dollar (USD) on Tuesday after US inflation data surprised to the downside, reducing expectations of a near-term Federal Reserve (Fed) interest rate hike.

EUR/USD snaps a two-day losing streak on Tuesday as softer-than-expected United States (US) inflation data weighs on the US Dollar (USD) and prompts traders to scale back expectations of a near-term Federal Reserve (Fed) interest rate hike.

TD Securities’ Julie Ioffe and James Rossiter argue that the European Union already possesses key ingredients for stronger long-term growth, including wealthy consumers, productive workers, deep private savings and solid fiscal capacity.

MUFG’s Lee Hardman reports the New Zealand Dollar is the top G10 performer overnight, helped by a hawkish shift in RBNZ rate expectations.

ING’s Francesco Pesole argues that the EUR/USD short-term rate differential is currently supporting the Euro as Gulf tensions rise, helped by a recovery in EUR front-end rates.

GBP/JPY trades in a narrow range on Tuesday as market sentiment remains fragile amid escalating tensions between the US and Iran, which are driving Oil prices higher once again. At the time of writing, the cross trades around 217.10 as the Japanese Yen (JPY) remains broadly weak.

Brown Brothers Harriman’s (BBH) Elias Haddad notes USD/JPY is trading near a 40‑year high above 162.00 while Japanese Government Bonds are outperforming. Strong demand at the 20‑year auction and comments from Finance Minister Satsuki Katayama encouraging more domestic investment support JGBs.

The AUD/USD pair trades 0.35% higher to near 0.6945 during the European trading session on Tuesday. The Aussie pair gains as the US Dollar (USD) underperforms its peers ahead of the United States (US) Consumer Price Index (CPI) data for June, which will be published at 12:30 GMT.

MUFG’s Lee Hardman notes Japanese government bond yields have fallen despite higher global yields, with Japanese Government Bonds (JGBs) supported by verbal intervention from policymakers.

The British Pound (GBP) appreciates against the US Dollar (USD)  on Tuesday to trim previous losses and return to the 1.3375 area, aiming to retest resistance at the key 200-day Simple Moving Average (SMA).