Forex Today – Asian Session: Market participants are watching US inflation data.

What to watch for on Wednesday, August 10:

The EUR extended its weekly decline throughout the first half of the day, but managed to recover some ground during the US session. However, volatility in financial markets was limited amid US inflation figures.

Market traders are awaiting the US consumer price index, hoping that price pressure has started to ease in July. However, the core annual reading is expected to advance to 6.1% from the current level of 5.9%. At the end of the day, the speculative interest will rush to assess what they think the Federal Reserve will do with monetary policy. China and Germany will also release inflation data ahead of the US figures.

The EUR/USD pair flirted with 1.0250, but lost about 50 points before the close. The common currency was hit by headlines that Russia had suspended oil flows through the southern section of the Druzhba pipeline due to payment problems in transit.

The energy crisis affecting Europe has prompted the UK government to plan for possible organized power blackouts this winter for industry and households, in the worst case. The GBP/USD pair dipped and is trading around 1.2060 ahead of the Asian open.

Commodity-linked currencies turned red against the dollar at the end of the day, although losses are limited. AUD/USD is trading around 0.6950, while USD/CAD is hovering around 1.2890.

Gold was one of the best performers, reaching an intraday high of $1,800.49 a troy ounce. It ended the day at $1,795. Oil prices rose earlier in the day but ended the day with modest gains. WTI is trading at $90.70 a barrel.

Wall Street fell, following the example of its European counterparts, although losses moderated. US Treasury yields, on the other hand, rose with the 10-year Treasury yield, currently at 2.79%.