The GBP/USD pair extends its sideways consolidation around the 1.3500 psychological mark through the first half of the European session on Wednesday. Traders opt to wait on the sidelines ahead of important macro data from the US and the UK.

UOB’s Quek Ser Leang and Lee Sue Ann observe USD/JPY consolidating near 159.25 after Monday’s sharp rise, with intraday trade expected between 158.95 and 159.60. While momentum is strong, deeply overbought conditions limit upside beyond 159.60.

The Swiss Franc (CHF) is down against its major currency peers during the European trading session on Wednesday. As of writing, USD/CHF trades 0.17% higher at around 0.8125.

Silver (XAG/USD) has returned to levels a few cents above $66.00 on Wednesday’s European session after finding support at the $64.20 area on Tuesday.

Societe Generale’s Kenneth Broux highlights that USD/MXN failed to clear its 200‑day moving average, keeping downside momentum intact. The pair is attempting to break the lower end of a multi‑month range, with resistance at 17.17 and projected downside objectives at 16.65 and 16.50/16.25.

The US Bureau of Labor Statistics (BLS) will publish the July Consumer Price Index (CPI) data on Wednesday. The report is expected to show a small decline in consumer inflation and core inflation. 

ING’s Chris Turner reports the Brazilian Real (BRL) underperformed in an otherwise supportive carry environment after a bank downgraded Brazilian equities and a new poll showed President Lula widening his lead ahead of October elections.

USD/IDR extends its gains for the second successive day, trading around 17,920 during the European hours on Wednesday. The pair is advancing as the Indonesian Rupiah (IDR) faces pressure from weak domestic economic fundamentals and subdued market sentiment.

DBS Group Research Strategist Chang Wei Liang highlights that the Japanese Yen (JPY) remains undervalued but that this undervaluation has narrowed after Japan’s second FX intervention of 2026, conducted jointly with the United States (US).

OCBC’s Sim Moh Siong and Christopher Wong report that Philippine Peso (PHP), Indian Rupee (INR), Indonesian Rupiah (IDR) and Thai Baht (THB) weakened as Oil’s rebound renewed pressure on net importers.

Canadian Dollar (CAD) ticks down from two-month highs as the US Dollar (USD) firms up across the board, with investors bracing for the US Consumer Price Index (CPI) report due later in the day.

The Japanese Yen (JPY) trades cautiously against the US Dollar (USD) during the European trading session on Wednesday, with the USD/JPY edging up to near 159.36.

EUR/USD extends its losses for the third successive day, trading around 1.1540 during the European hours on Wednesday. The pair holds losses as the Euro (EUR) remains weaker following the release of Germany’s Harmonized Index of Consumer Prices (HICP) data.

The GBP/JPY cross climbs to a nearly two-week high, around the 215.35-215.40 area, during the first half of the European session on Wednesday and looks to prolong its recent solid recovery from the lowest level since early March, touched last week.

UOB’s Quek Ser Leang and Lee Sue Ann highlight that GBP/USD closed marginally higher near 1.3510, with price action confined to a narrow 1.3493–1.3515 range. Intraday, they see scope for the Pound to edge higher but still capped within 1.3490–1.3535.

The New Zealand Dollar (NZD) accelerates its reversal against the US Dollar (USD) on Wednesday, weighed by cautious markets amid growing tensions in the Middle East and political uncertainty at home.

OCBC’s Sim Moh Siong and Christopher Wong note the Reserve Bank of Australia (RBA) kept rates unchanged at 4.35% but retained a modest tightening bias, with the Board having actively considered a hike.

The AUD/USD pair prolongs its consolidative price move for the third straight day and trades around mid-0.7000s through the early European session on Wednesday.

MUFG’s Teppei Ino reviews recent USD/JPY price action following coordinated Japan-US intervention. The pair opened near 157.58, dropped toward 155.20 on official confirmation of joint action, then recovered and traded above 158 by 7 August.

The British Pound (GBP) remains in a limited range at around 1.3500 against the US Dollar (USD) during the European trading session on Wednesday.

Here is what you need to know on Wednesday, August 12:

The Euro (EUR) has picked up from session lows against the British Pound (GBP) on Wednesday as hot German inflation figures have partially offset a mild risk-off sentiment, amid flaring tensions in the Middle East.

UOB’s Quek Ser Leang and Lee Sue Ann report EUR/USD holding near 1.1540 after a quiet session, with momentum indicators mostly flat. Intraday, they expect consolidation between 1.1530 and 1.1560, but a break above 1.1560 could trigger a quick move to 1.1580.

The Euro (EUR) trades marginally lower at around 1.1534 against the US Dollar (USD) at the start of the European trading session on Wednesday.

EUR/JPY moves little for the second successive day, trading around 183.90 during the Asian hours on Wednesday. The currency cross is maintaining a mildly bearish near-term tone as it slips beneath the 50-day Exponential Moving Average (EMA) while holding above the shorter nine-day EMA.

The USD/CAD pair ticks higher during the Asian session on Wednesday, snapping a three-day losing streak to the 1.3915 area or its lowest level since June 10. Spot prices, however, lack bullish conviction and trade around 1.3930, awaiting the release of the latest US inflation figures.

NZD/USD continues its losing streak for the third consecutive day, trading around 0.5870 during the Asian hours on Wednesday. The pair depreciates as the US Dollar (USD) gains ground on increased safe-haven demand amid rising uncertainty surrounding Middle East peace talks.

AUD/USD depreciates after registering modest gains in the previous day, trading around 0.7060 during the Asian hours on Wednesday. The currency pair loses ground as the US Dollar (USD) rises ahead of a crucial inflation report.

The USD/JPY pair touches a one-and-a-half-week high during the Asian session on Wednesday, with bulls now looking to build on the momentum further beyond mid-159.00s amid a supportive fundamental backdrop.

On Wednesday, the People’s Bank of China (PBOC) sets the USD/CNY central rate for the trading session ahead at 6.7882 compared to the previous day's fix of 6.7900 and 6.7430 Reuters estimate.