A minor correction in the US dollar across its main competitors appears to prompt a recovery in GBP/USD from 27-month lows, as the rates hold above the 1.24 handle ahead of the UK CPI data. Hard Brexit woes to remain in play.
USD/JPY found buyers ahead of the 108 handle amid an uptick in S&P 500 futures, although the recovery appears limited by broad-based USD retreat and mixed Asian equities. Focus on US housing data for fresh impetus.
The monthly change in the consumer price index is expected to be flat in June down from 0.3% in May. The annual rate is predicted to be unchanged at 2 %. The core CPI rate is forecast to be flat in June, after gaining 0.2% in April.
Gold carries the 3-week old lower high formation forward as it clings to 21-day moving average (DMA) during Wednesday’s less active market hours ahead of the European session. Lack of major data/news during the Asian session limits market moves.