Euro reclaims part of the ground lost vs. the US Dollar. Stocks in Europe open the session with a decent bounce. EUR/USD approaches 1.1000 on improved risk appetite. The USD Index (DXY) returns to the low 102.00s. Chinese inflation figures surprised to the upside in July. (FXStreet)

AUD/USD attracts some buying on Wednesday and recovers further from over a two-month low. A modest USD downfall and a positive risk tone lend some support to the risk-sensitive Aussie. China’s economic woes and bets for more Fed rate hikes should keep a lid on any further gains. (FXStreet)

Pound Sterling recovers as more interest rate hikes from the BoE are in the pipeline. United Kingdom factory activities will be keenly watched this week. UK PM Rishi Sunak might justify his promise of easing inflation to 5% by year-end. (FXStreet)

Following a two-day rally, USD/JPY lost its momentum and retreated to the 143.00 area on Wednesday. The data from Japan showed that Machine Tool Orders declined 198% on a yearly basis in July. (FXStreet)

USD/CAD reverses from 10-week high but lacks downside momentum. WTI crude oil prints mild gains while defending weekly trading range at four-month high. Risk appetite improves and allows US Dollar to better brace for inflation data. Fears of slower energy demand from China, US weigh Oil price. (FXStreet)

NZD/USD recovers from the lower level in two months but lack follow-through. RBNZ Inflation Expectations for Q3 improves to 2.83% QoQ versus 2.79% prior. Impending bull cross on MACD, gradually improving RSI favor corrective bounce but multiple hurdle check Kiwi bulls. (FXStreet)

USD/INR prints the first daily loss in three, retreats from multi-day high. China inflation, Biden Administration’s easy stand on Beijing-backed AI investment ban favor pullback. Cautious mood ahead of RBA Interest Rate Decision, US inflation data restrict Indian Rupee moves. Softer Oil price, US Dollar’s retreat from key resistance add strength to corrective bounce in Rupee. (FXStreet)

USD/CHF holds lower grounds near intraday bottom during the first loss-making day in three. Markets stabilize on China news after multiple catalysts fanned risk aversion. Preparations for Thursday’s US CPI, light calendar could restrict immediate Swiss Franc moves. Risk catalysts eyed for clear directions, firmer US inflation backs hawkish Fed concerns and may recall buyers. (FXStreet)

USD/CNH prints the first daily loss in four after China inflation data for July. Improvement in PPI supersedes downbeat CPI data to allow Yuan to pare recent losses. MACD, RSI keep buyers hopeful of poking multi-month-old descending resistance line. 21-DMA, fortnight-old rising support line restricts immediate downside of USD/CNH. (FXStreet)

USD/MXN holds ground near 17.08, down 0.11% for the day. Recent Federal Reserve (Fed) comments signalled a shift from rate hikes to holding them steady. Market players will closely watch the interest rate decision by Banxico on Thursday. (FXStreet)

EUR/JPY oscillates in a narrow trading band through the Asian session on Wednesday. A softer risk tone benefits the safe-haven JPY and acts as a headwind for the cross. The BoJ-ECB policy divergence helps limit the downside and favours bullish traders. (FXStreet)

GBP/NZD continues to grind higher and is touching highs last seen back in March 2020. The pair have moved higher since February this year on diverging central bank policy and while one technical indicator (CCI) suggests that the pair are overbought, the short- and medium-term term outlook remains positive. (DailyFX)

EUR/GBP remains locked in a range with little reason at the moment to attempt a breakout. The range between 0.8504 and 0.8721 has held for nearly three months, while the pair have started to narrow this range recently. Resistance at 0.8721, originally formed off a prior level of support, is strengthened by the 200-day simple moving average that currently sits just above at 0.8722. The daily charts outlook is not helped by the recent 20-day and 50-day crossover, while the CCI indicator shows that the pair is neither overbought nor oversold. The current range is likely to persist unless a fundamental driver appears. (DailyFX)

GBP/JPY lacks any firm intraday direction and remains confined in a narrow range. The BoE’s less hawkish signals and a bleak outlook for the UK economy cap gains. A more dovish BoJ undermine the JPY and helps limit the downside for the cross. (FXStreet)

AUD/JPY struggles to gain and currently trades around 93.77, losing 0.05% on the day. Chinese Consumer Price Index (CPI) YoY fell 0.3% (Jul) from 0% prior and -0.4% expected. Japanese policymakers support maintaining ultra-loose monetary policy. (FXStreet)

The index faces some selling pressure near 102.40. The small improvement in the risk appetite weighs on the Dollar. Weekly Mortgage Applications will be the sole release in the docket. The greenback, in terms of the USD Index (DXY), retreats from recent tops near 102.80 amidst a broad-based improvement in the risk sentiment. (FXStreet)

WTI consolidates in a tight range around $82.30 on Wednesday. The Chinese inflation data fuels concern over the economic slowdown in the nation. The EIA estimated Gross Domestic Product (GDP) to increase by 1.9% in 2023, up from 1.5% in the previous forecast. Market players will monitor the EIA Crude Oil Stocks Change, US inflation data. (FXStreet)

Gold price seems supported above $1,920.00 for now as US Dollar corrects. Investors await United States inflation data for further guidance. Fed Williams, Harker expect that interest rates have peaked for now. (FXStreet)

Silver attracts some buying and recovers a part of the overnight slide to a one-month low. The recent breakdown below important technical support levels favours bearish traders. Any subsequent recovery might now be seen as a selling opportunity and remain capped.

Bitcoin continues to show little sign of life with the cash price stuck in a narrow range over the last 10 weeks. Volatility is at a multi-month low with analysts at Bitcoin on-chain data specialists Glassnode pointing out that ‘The 30-day price range is even more extreme, constricting price to just a 9.8% band over the last month, and with only 2.8% of all months being tighter.Periods of consolidation and price compression at this magnitude are extremely rare events for Bitcoin.’ The 14-day ATR volatility indicator is also showing the uber-low levels of current price action and is at a low last seen in early January this year. (DailyFX)

Source: FXStreet, DailyFX

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