China Inflation Cools in July as CPI Misses Forecast, PPI Deflation Eases 
England Drought Expands to 71% as Heatwave Deepens Water Crisis 
Goldman Sachs Sees US Stock Buybacks Outpacing Equity Issuance as AI Funding Rises 
European Stocks Flat as Oil Prices Rise, US CPI in Focus 
U.S. Stock Futures Flat Ahead of July CPI Data 
Gold Price Hits Two-Month High as Investors Await US Inflation Data 
US Dollar Near Two-Month Low as Markets Await Inflation Data 
Gold Prices Hold Near Seven-Week High as Markets Await U.S. Inflation Data 
South Korean Won Leads Asian FX Losses as Dollar Rises 
Japan Executives Warn Weak Yen and Currency Volatility Threaten Economy 
Gold Prices Rise as Fed Rate Hike Bets Ease 
S&P 500, Nasdaq Futures Rise as Iran Risks and CPI Loom 
Singapore Raises 2026 GDP Growth Forecast to 4.5%-5.5% as AI Boom Fuels Economy 
Asian Stocks Rise as Weak US Jobs Data Eases Fed Rate Hike Fears 
Yen Stabilizes After Intervention Slide as Australian Dollar Hits Eight-Week High 
The U.S. dollar traded mostly flat in early Asian trading on Wednesday as investors focused on upcoming U.S. inflation data for clues about the Federal Reserve’s next interest-rate decision. Renewed attacks on shipping routes in the Middle East had limited impact on currency markets, although higher oil prices remain a key risk for inflation.
The Japanese yen was little changed at 159.275 per dollar, remaining near its weakest level of the month despite recent coordinated action by U.S. and Japanese authorities aimed at supporting the currency. The euro was steady at $1.1542, while the British pound held around $1.3508.
Among commodity-linked currencies, the Australian dollar remained near $0.7064 and the New Zealand dollar traded around $0.5879. Investors were also monitoring political developments in New Zealand as Prime Minister Christopher Luxon met with National Party lawmakers amid speculation about his leadership ahead of the country’s next general election.
The biggest market catalyst is Wednesday’s U.S. inflation report. Traders are looking for signs that price pressures are easing, which could influence expectations for Federal Reserve interest rates. Recent weaker-than-expected U.S. employment data have increased uncertainty over the central bank’s policy path.
ING analysts said inflation could continue moderating through the rest of 2026 if oil prices remain under control and shipping through the Strait of Hormuz returns to normal. However, geopolitical tensions could complicate that outlook by pushing energy prices higher.
Brent crude rose about 0.6% to $89.40 a barrel after fresh attacks disrupted shipping near the Bab el-Mandeb Strait and the Strait of Hormuz.
Federal Reserve Bank of Chicago President Austan Goolsbee said inflation remains a greater concern than labor-market weakness, adding to uncertainty about future policy. Fed funds futures currently show traders almost evenly split, with a 52% probability of unchanged rates and a 48% chance of a 25-basis-point increase at the September meeting.
In crypto markets, Bitcoin slipped 0.2% to $63,554, while Ethereum fell 0.1% to $1,879.
