The EUR/USD advances some 0.41% on Wednesday, trading at 1.1466 after US inflation data was softer than expected, weighing on the Greenback, as market participants expect a less hawkish Federal Reserve. Towards the end of the year.

USD/JPY has spent Wednesday doing an impression of volatility without any of the substance. The pair climbed to 162.42 through the London morning, was knocked down to 161.90 by the New York afternoon, bounced back to 162.28, and trades at 162.11 at writing, which is precisely where it opened.

The Australian Dollar opened near 0.6975, ground higher through every session of the day, and poked above 0.7000 for the first time since mid-June before the momentum quietly left the room.

Cable spent the London morning drifting, printed the session low at 1.3381 shortly after 10:00 GMT, and then spent the New York afternoon repricing the entire Dollar complex.

The Mexican Peso appreciates against the US Dollar during the North American session, up 0.29% after the latest US inflation reports, easing expectations that the Federal Reserve would raise rates to tackle high inflation. At the time of writing, the USD/MXN trades at 17.38

The USD/CHF breaks a rising wedge, tumbles over 0.62%, trading near three-day lows, as the pair clears the July 14 swing low of 0.8067. At the time of writing, the pair trades at 0.8041.

OCBC’s Sim Moh Siong and Christopher Wong expect Asian FX to trade with a better tone after softer United States (US) core Consumer Price Index (CPI) reduced near-term Fed hike expectations and pressured USD.

EUR/USD trades higher near the 1.1450 area on Wednesday as the US Dollar (USD) weakens following softer-than-expected United States (US) Producer Price Index (PPI) data.

The Japanese Yen (JPY) holds modest gains against the US Dollar (USD) on Wednesday but struggles to extend its recovery despite a broadly weaker Greenback following softer-than-expected US inflation data. At the time of writing, USD/JPY trades around 162.14, down 0.07% on the day.

The Pound Sterling rises by some 0.60% against the US Dollar after the latest Producer Price Index (PPI) in the US showed prices edging lower, driven by the dip in energy prices since late May. At the time of writing, the GBP/USD trades at 1.3460 after bouncing off a daily low of 1.3370.

BNY’s Geoff Yu highlights Japanese Prime Minister Sanae Takaichi’s warning that Japan must build a strong economy now, rejecting claims that an economic blueprint drove the JGB selloff.

Chris Turner at ING says EUR/USD rallied on softer US CPI but warns that rising Oil and European natural gas prices limit upside. He expects EUR/USD to struggle above 1.1460/70 and potentially retreat toward 1.1360/80 if Oil gains another leg higher.

AUD/USD trades higher near the 0.7000 level on Wednesday as the Australian Dollar (AUD) benefits from broad US Dollar (USD) weakness following softer-than-expected United States (US) producer inflation data.

Rabobank's Senior FX Strategist Jane Foley discusses the British Pound's (GBP) strong performance, noting GBP is the second-best G10 currency over three months despite no Bank of England (BoE) hikes.

EUR/USD recovers its intraday losses on Wednesday as the US Dollar (USD) comes under pressure after the latest US inflation data surprised to the downside. At the time of writing, the pair trades around 1.1430 after hitting an intraday low of 1.1406.

Rabobank strategists Mauricio Une and Renan Alves note that the US Dollar (USD) ended the previous week at Brazilian Real (BRL) 5.1086, with the Brazilian Real appreciating 1.2% and ranking third among 24 emerging currencies.

BNY’s Geoff Yu reports that European Central Bank (ECB) officials Piero Cipollone and Martin Kocher are focused on preventing the energy shock and Middle East uncertainty from feeding broader Eurozone inflation.

EUR/GBP stays under pressure as reduced political uncertainty in the United Kingdom and expectations of higher Bank of England (BoE) interest rates keep the British Pound (GBP) favoured over the Euro (EUR).

BNY’s Geoff Yu highlights that selling of Canadian Dollar (CAD) accounts has eased ahead of the Bank of Canada (BoC) meeting, allowing light CAD purchases after prolonged pressure.

The British Pound (GBP) has retraced previous gains against the US Dollar (USD) on Wednesday, returning to the 1.3390 area from session highs of 1.3420 and turning negative on the daily chart.

The New Zealand Dollar (NZD) clings to Tuesday’s gains around 0.5820 during the European trading session on Wednesday. The Kiwi pair reflects strength in a risk-on market environment, driven by easing fears of Federal Reserve (Fed) interest rate hikes this year.

The Canadian Dollar (CAD) is facing an upward correction, with the USD/CAD currency pair sliding below the critical 1.4100 mark.

MUFG’s Derek Halpenny reports that the Canadian Dollar (CAD) has benefited from weaker United States (US) Consumer Price Index (CPI) and higher Oil prices, with spreads pointing to modest further gains versus the US Dollar (USD).

TD Securities projects UK GDP to grow 0.1% month-on-month in May, led by services and strong retail sales, while manufacturing and industrial output remain under pressure from Middle East-related headwinds and higher input costs.

Germany 30-y Bond Auction rose from previous 3.49% to 3.64%

The Eurozone industrial sector activity declines by 0.2% in May, while it was expected to rise at the same pace, according to data published by Eurostat. In April, the Industrial Production data rose by 0.3%, revised higher from 0.1%.

The Japanese Yen (JPY) struggles in the lower range of the 162.00s against the US Dollar (USD) on Wednesday, not far from the 40-year lows, at 162.85. Rising geopolitical tensions and higher Oil prices offset the positive impact of the soft US consumer inflation data released on Tuesday.

USD/CAD remains subdued after registering modest losses in the previous day, trading around 1.4050 during the European hours on Wednesday. The technical analysis of the daily chart indicates the pair is testing the lower boundary of the symmetrical triangle.

Eurozone Industrial Production s.a. (MoM) came in at -0.2%, below expectations (0.2%) in May

Eurozone Industrial Production w.d.a. (YoY) came in at -1.2%, below expectations (-0.5%) in May