Heading into Wednesday’s London trading session, the big news is WTI Crude Oil continuing to recede off of its recent highs and is now trading at $104.37 per barrel. A test of the $100.00 per barrel level to the downside is now within range before the end of the week.
Bitcoin is aiming to build upon its early week momentum however is struggling now just above the $20,000 mark. Risk-on sentiment is still seen in the market which means BTC/USD could still have a rally in store before the end of the week.
USD/JPY is trading near its weekly highs at 136.41. Its starting to look a bit ‘topppy’ which could indicate who could see a run of Yen strength between now and the end of the week.
UK core inflation came in slightly less than expected at 5.9% Y/Y (Expected: 6.1% Y/Y). GBP/USD had a muted reaction as it continues to trade in the 1.2260 region. The lower than expected reading however brings optimism that we can see a similar declining release the next time inflation data is published out of the United States.
At 8:30 AM EST, Canada will also be releasing their core inflation data with an expectation for a reading of 5.9% Y/Y. USD/CAD should see a significant move afterwards as it now hovers in the 1.2980 region.