The GBP/JPY holds firm on Wednesday at around 215.00, as neither buyers nor sellers are reluctant to open fresh directional bets amid fears of renewed intervention in the FX markets by US and Japanese authorities to propel the Yen.

The Aussie Dollar ended Wednesday’s session with losses against the Greenback as US inflation data matched estimates, in both headline and core. Consequently, traders pushed back against rate hikes, though the AUD/USD faded the initial move and traded at 0.7061, down 0.07%.

The Euro reversed course after reaching a two-day high of 1.1563, following the release of a benign US inflation report for July, which triggered a repricing for a less “hawkish” Federal Reserve, throughout 2026.

Commerzbank’s Charlie Lay and Dr. Henry Hao point out USD/CNY is stable around 6.75, with their model implying a slightly stronger PBoC fix.

The Mexican Peso appreciates to levels last seen in 2024 following a softer-than-expected US inflation report, preventing a rate hike by the Federal Reserve as projected by investors. The USD/MXN trades at 17.05 after hitting early lows of 17.01.

NZD/USD is trading near 0.5860, down over 0.30% on Wednesday and falling for the third consecutive day.

The USD/CHF edges higher by some 0.30% on Wednesday, refreshing ten-day highs of 0.8138, as the uptrend is poised to extend if it clears key resistance levels.

USD/JPY is back around the mid-159.00s area, testing the day's highs after rebounding sharply from a low around the 158.60 level.

EUR/USD edges lower on Wednesday, reversing earlier gains as the US Dollar (USD) shrugs off in-line US Consumer Price Index (CPI) data. At the time of writing, the pair trades around 1.1521 after touching an intraday high of 1.1563.

The Pound Sterling holds firm within familiar levels after the US inflation report was aligned with estimates, a relief for the Federal Reserve, which is laser-focussed on tackling higher prices. The GBP/USD trades at around 1.3500 after reaching a high of 1.3546.

AUD/USD is trading near the 0.7070 zone, holding onto a minority of Wednesday's gains after the pair touched a session high near 0.7090.

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NZD/USD retreats to around 0.5865 on Wednesday at the time of writing, down 0.25% on the day. The New Zealand Dollar (NZD) remains under pressure against the US Dollar (USD), while inflation data from the United States (US) triggers only a limited reaction across the foreign exchange market.

The Japanese Yen trims its gains against the US Dollar (USD) on Wednesday as in-line US CPI data fails to trigger a significant move. At the time of writing, USD/JPY trades around 159.20 after touching an intraday low of 158.58.

The Euro (EUR) steadies against the Pound Sterling (GBP) on Wednesday, with EUR/GBP trading flat near the 0.8540 zone after two consecutive declines.

USD/CAD trades around 1.3915 on Wednesday at the time of writing, virtually unchanged on the day with a modest decline of 0.06%.

GBP/USD trades modestly higher on Wednesday as the US Dollar comes under mild pressure following the release of the latest US inflation figures. However, the market reaction remains limited as the data broadly matched expectations.

Societe Generale analysts Brendan McKenna and Dev Ashish outline scenarios for Brazil’s 2026 election, assigning a 65% probability to President Lula winning a fourth term and 30% to Flavio.

EUR/USD trades around 1.1550 on Wednesday at the time of writing, up a modest 0.08% on the day.

MUFG’s Michael Wan reports the Reserve Bank of Australia kept its policy rate at 4.35% in a unanimous decision. AUD/USD initially dipped on the statement but later rebounded as Governor Bullock reiterated hawkish inflation concerns.

BNY’s Wee Khoon Chong highlights that institutional investors bought Dollar and sold Japanese Yen after the June BoJ hike, and again following late-July joint intervention to weaken USD/JPY. Despite official action, real money treated the move as a USD/JPY buying opportunity.

NZD/USD extends its decline for a third consecutive day on Wednesday and trades around 0.5860 at the time of writing, down 0.28% on the day.

The Japanese Yen (JPY) continues to navigate complex market dynamics, consolidating near the 159.25 level against the US Dollar (USD) following a sharp upward push.

The Euro (EUR) nurses marginal gains against the US Dollar (USD) on Wednesday, with the EUR/USD pair flattening just below the 1.1550 level during the European trading session.

GBP/JPY holds firm on Wednesday, trading within Monday’s range as the Japanese Yen (JPY) stays on the back foot, having given up nearly half of the gains triggered by the joint US-Japan intervention. At the time of writing, the cross trades around 215.12, virtually unchanged on the day.

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The Japanese Yen (JPY) is one of the best performers in an unusually low-volatility market on Wednesday, picking up to levels near 159.00 against the US Dollar, after hitting support in the 159.45 area.

The Australian Dollar (AUD) is up against its major currency peers, trading marginally higher at around 0.7068 against the US Dollar (USD) during the European trading session.

The Euro (EUR) is paring previous gains against the Japanese Yen (JPY) on Wednesday, weighed by a mild risk-off market mood as tensions in the Middle East grow.

UOB’s Quek Ser Leang and Lee Sue Ann note AUD/USD rebounded to close around 0.7062 after the RBA left its cash rate at 4.35%. Intraday, they see scope for the Australian Dollar to edge higher, though a sustained break above 0.7075 is unlikely.