The British Pound (GBP) pares gains against the US Dollar (USD) on Wednesday, with bears testing the bottom of the intra-week trading range at the 1.3620 area, after failure to breach resistance at 1.3660.

The US Dollar (USD) trades 0.2% higher at around 1.3870 against the Canadian Dollar (USD) during the European trading session on Wednesday. The Loonie pair strengthens as the Canadian Dollar underperforms due to trade tensions between the United States (US) and Canada.

MUFG’s Derek Halpenny notes the Japanese Yen is firmer versus most G10 currencies as markets increasingly price a Bank of Japan rate hike in September.

EUR/JPY depreciates after registering modest gains, trading around 185.60 during the European hours on Wednesday. The technical analysis of a daily chart indicates that the currency cross is remaining within the ascending channel pattern, signaling an ongoing bullish bias.

The Swiss Franc (CHF) is trading lower against the US Dollar (USD) on Wednesday, but it has managed to trim some losses after the release of an upbeat Swiss ZEW Economic Expectations Index.

AUD/USD extends its gains for the second consecutive day, trading around 0.7180 during the European hours on Wednesday.

The Australian Dollar (AUD) trades 0.13% higher at around 114.30 against the Japanese Yen (JPY) during the European trading session on Wednesday.

Derek Halpenny at MUFG says the August RBA minutes and stronger-than-expected monthly CPI reinforce the risk of an earlier rate hike than markets currently price.

Here is what you need to know on Wednesday, August 26:

United Overseas Bank (UOB) analysts Quek Ser Leang and Lee Sue Ann describe USD/JPY as remaining in a range-trading phase. For the 24-hour view they see the Dollar fluctuating between 158.95 and 159.50 after recent narrow ranges and little-changed closes.

The EUR/USD pair struggles to capitalize on the previous day's modest bounce from the weekly low, and trades with a negative bias through the early European session on Wednesday.

The British Pound (GBP) is under pressure against the Japanese Yen (JPY) on Wednesday, trading 0.22% lower at around 216.85 during the European trading session.

Silver price (XAG/USD) extends its gains for the second successive day, trading around $68.80 per troy ounce during the European hours on Wednesday.

The Euro (EUR) edges up for the second consecutive day against the British Pound (GBP) on Wednesday, trading halfway within the monthly range.

The NZD/USD pair comes under some renewed selling pressure on Wednesday and drops to a fresh weekly low, around the 0.5945 region during the early European session.

Danske Research Team reports that EUR/USD remained little changed around 1.1670, with the chart showing only a modest pullback from overnight highs before a partial recovery.

The GBP/USD pair declines to near 1.3625 during the early European trading hours on Wednesday. The US Dollar (USD) edges higher against the British Pound (GBP) as markets turn cautious ahead of the US July Personal Consumption Expenditures (PCE) Price Index data, which is due later on Wednesday. 

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann maintain a positive 1–3 week outlook for GBP/USD, with 1.3700 still in sight as long as the pair holds above 1.3605.

The Japanese Yen (JPY) trades higher against the US Dollar (USD) on Wednesday, with USD/JPY dropping 0.1% to near 159.00. The Asia-Pacific currency gains amid firm expectations that the Bank of Japan (BoJ) will hike policy rates by 25 basis points (bps) to 1.25% in the September meeting.

The Canadian Dollar (CAD) reverses earlier gains against the US Dollar (USD) on Wednesday, weighed by a recent pullback in oil prices and the escalation of the trade war with the US.

The Euro (EUR) trades 0.22% lower at around 185.45 against the Japanese Yen (JPY) during the early European trading session on Wednesday.

The Australian Dollar (AUD) outperforms its major currency peers on Wednesday, trading 0.2% higher to near 0.7180 against the US Dollar (USD) during the early European trading session.

The EUR/USD pair trades in negative territory near 1.1665 during the early European trading hours on Wednesday, pressured by a rebound in the US Dollar (USD). Markets turn cautious ahead of the release of the key US July Personal Consumption Expenditures (PCE) Price Index report later on Wednesday. 

USD/CHF gains ground after posting minor losses, trading around 0.8040 during the Asian hours on Wednesday. The pair appreciates as the US Dollar (USD) gains support ahead of the upcoming US Personal Consumption Expenditures (PCE) release, the Federal Reserve’s key inflation metric.

The GBP/USD pair trades with a negative bias below mid-1.3600s during the Asian session on Wednesday, eroding a part of the previous day's strong gains.

The Euro (EUR) continues to trade in a tight range at around 1.1660 against the US Dollar (USD) during the Asian trading session on Wednesday.

NZD/USD depreciates after registering modest gains in the previous day, trading around 0.5960 during the Asian hours on Wednesday.

The USD/JPY pair loses ground to near 158.90 during the Asian trading hours on Wednesday. The US Treasury’s bond buyback programs weigh on the US Dollar (USD) against the Japanese Yen (JPY).

The AUD/USD pair attracts buyers for the second straight day and climbs to the 0.7170 area following the release of Australian consumer inflation figures during the Asian session on Wednesday.

The USD/CAD pair edges higher during the Asian session on Wednesday, though it remains confined within the previous day’s range. Spot prices currently trade around mid-1.3800s as traders now look to the US Personal Consumption Expenditures (PCE) Price Index for some meaningful impetus.