The Euro (EUR) is trading marginally higher against the US Dollar (USD), consolidating after its retreat from late-December highs as European Central Bank (ECB) commentary strikes a more balanced tone, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

The Euro (EUR) trades little changed against the US Dollar (USD) on Wednesday, with traders showing a muted reaction to the latest US Producer Price Index (PPI) and Retail Sales data.

The Canadian Dollar (CAD) is steady, up fractionally vs. the US Dollar (USD) as it trades in a tight consolidation range following its decline from late December. The recovery in oil prices is important and is offering the CAD some fundamental support.

The Euro (EUR) trims part of its gains against the Swiss Franc (CHF) on Wednesday as traders digest remarks from key European Central Bank (ECB) officials amid a thin economic calendar on both sides.

The USD/CAD pair trades flat around 1.3885 during the European trading session on Wednesday. The Loonie pair consolidates ahead of the United States (US) Producer Price Index (PPI) data for October and November, and the Retail Sales data for November.

USD/JPY eased below 159.00 after hitting 159.45 overnight, prompting fresh warnings from Japanese Finance Minister Satsuki Katayama against speculative or excessive yen movements, BBH FX analysts report.

The Japanese Yen is trimming some losses on Wednesday as the US Dollar recovery falters.

Germany 30-y Bond Auction increased to 3.45% from previous 3.26%

Strong momentum indicates further US Dollar (USD) strength; the significant resistance at 160.00 is likely out of reach for now. In the longer run, strong USD rally has scope to extend, potentially breaking above 160.00, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Speculation over early elections in Japan has driven renewed Japanese Yen (JPY) underperformance, pushing USD/JPY toward the 160 level while lifting JGB yields and domestic equities.

EUR/GBP trades around 0.8660 on Wednesday at the time of writing, down 0.12% on the day, as the Pound Sterling (GBP) benefits from cautious investor positioning ahead of UK growth data.

The New Zealand Dollar is ticking higher on Wednesday but remains trading within Tuesday’s range, with upside attempts capped below 0.5750 and FX volatility subdued.

Slight increase in downward momentum is likely to lead to a lower range of 0.5720/0.5765 rather than a continued decline. In the longer run, for the time being, NZD is likely to trade in a range between 0.5720 and 0.5805, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

There is a chance for Australian Dollar (AUD) to test 0.6670; the major support at 0.6655 is not expected to come into view. In the longer run, the current price movements are likely part of a range-trading phase between 0.6655 and 0.6745, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

EUR/USD is practically flat on Wednesday, trading just below 1.1650 at the time of writing, with one-month lows in the 1.1615 area in sight, which are at a relatively short distance.

There seems to be no way of stopping the USD/JPY rally. Speculation of snap elections is mounting, and the return of some degree of political risk premium is offering another chance to test Japan’s tolerance band on its currency.

GBP/JPY eases below 214.00 after hitting fresh all-time highs at 214.30.

The Pound Sterling (GBP) gains against its major peers, except antipodeans, on Wednesday. The British currency trades higher ahead of the United Kingdom (UK) monthly Gross Domestic Product (GDP) and factory data, which will be released on Thursday.

Slight increase in downward momentum could lead to Euro (EUR) edging lower, but a break of 1.1615 appears unlikely.

The AUD/USD pair is recovering its recent losses registered in the previous session, trading around 0.6700 during the European hours on Wednesday. The daily chart’s technical analysis indicated a weakening bullish bias as the pair is positioned slightly below the ascending channel pattern.

EUR/JPY extends its winning streak for the fourth successive session and reaches fresh all-time highs, trading around 185.40 during the early European hours on Wednesday.

Here is what you need to know on Wednesday, January 14:

The USD/JPY pair posts a fresh one-and-a-half-year high near 159.45 during the early European trading session on Wednesday. The pair strengthens as the Japanese Yen (JPY) continues to underperform across the board amid political uncertainty in Japan.

The Indian Rupee (INR) trades higher against the US Dollar in the opening session on Wednesday. The USD/INR pair drops to near 90.30 as the Indian Rupee gains on the outcome of trade talks between the United States (US) and India on Tuesday.

The USD/CHF pair posts modest gains around 0.8010 during the early European session on Wednesday. The Greenback strengthens against the Swiss Franc (CHF) after US inflation data that was broadly in line with estimates.

EUR/USD moves little after registering modest losses in the previous session, trading around 1.1650 during the Asian hours on Wednesday. The 14-day Relative Strength Index (RSI) momentum indicator, currently at 40 (below the 50 midline), signals weak momentum without indicating oversold conditions.

USD/CAD remains stronger for the second successive session, trading around 1.3900 during the Asian hours on Wednesday.

AUD/USD holds ground after registering modest losses in the previous session, trading around 0.6680 during the Asian hours on Wednesday.

NZD/USD extends its losses for the second successive day, trading around 0.5730 during the Asian hours on Wednesday.

The General Administration of Customs will publish its data for December on Wednesday at 03.00 GMT. Trade balance is expected to widen to $113.60B in December, compared to $111.68B in the previous reading.