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GBP/USD rises for the second consecutive day, trading around 1.3400 during the Asian hours. The pair appreciates as the US Dollar holds losses following softer-than-expected US inflation data, fueling hopes that the US Federal Reserve might adopt a less hawkish monetary stance.
The EUR/USD pair attracts some dip-buyers following the previous day's pullback from the 1.1460-1.1470 horizontal resistance, though it remains confined within a multi-week-old range. Spot prices trade around the 1.1435-1.1440 region during the Asian session on Wednesday, up for the second straight day amid modest US Dollar weakness.
Gold attracts some sellers after failing to find acceptance above the $4,100 mark the previous day, though it holds above the $4,000 psychological mark during the Asian session on Wednesday. Despite soft US Consumer Price Index data, investors remain worried about energy-driven inflation as escalating US-Iran tensions and the closure of the Strait of Hormuz remain supportive of elevated crude oil prices.
Bitcoin, Ethereum and Ripple trade with a mild positive bias on Wednesday as sentiment improves across the cryptocurrency market. BTC is testing its 50-day Exponential Moving Average, ETH has broken above a key resistance level at $1,800, while XRP has found support around a key level.
The Federal Reserve Chair who wants the institution to say less spent Tuesday legally required to say more, on the one morning the data handed him something pleasant to say. June's Consumer Price Index fell 0.4% on the month, the steepest single-month decline since April 2020.
Markets opened July with a December hike as the base case and spent five trading sessions unlearning and relearning it. A 57K payrolls print bled the tightening bets out of the strip; a re-shut Strait of Hormuz is pushing them back in. Wednesday's minutes from the June FOMC meeting landed mid-round-trip, describing a world that had already stopped existing.
