Pound Sterling
In a dramatic day of movement for the Pound, the British asset rose in response to an increase in average UK earnings and plummeted in reaction to the Bank of England’s dovish inflation report. The Pound lost over 0.4% against the Euro and 0.5% against the US Dollar.

US Dollar
A lack of economic reports for the US has restrained US Dollar movement for the first half of the week. Today the ‘Greenback’ may experience modest movement as the US releases its Mortgage Applications data and Wholesale Inventories figures. Investors will also be looking ahead to Thursday’s US initial jobless/continuing claims figures and Friday’s Advance Retail Sales report.

Euro
A decline in Germany’s Wholesale Price Index and a smaller-than-anticipated rebound in Eurozone industrial production left the common currency trending in a weaker position against several of its rivals. Expectations that this week’s GDP reports for the Eurozone will show stagnant growth are also weighing on the Euro.

Australian Dollar
With Australia’s Westpac Consumer Confidence gauge showing an improvement in sentiment, the Australian Dollar was able to rally against several of its rivals during the local session. The ‘Aussie’ extended gains against the Pound after the Bank of England delivered its quarterly inflation report.

New Zealand Dollar
The New Zealand Dollar advanced against the majority of its currency counterparts on Wednesday as investors snapped up the ‘Kiwi’ in the wake of the Reserve Bank of New Zealand’s Financial Stability Report. The central bank hinted that it will resume its rate hiking cycle in the near future. The comments led industry experts to bet that the next increase in borrowing costs will occur early next year.

Canadian Dollar
The Canadian Dollar gained on the Pound and Euro on Wednesday as both European assets weakened on the back of disappointing domestic reports. The ‘Loonie’ was little changed against the US Dollar. Movement in the commodity-driven currency is likely to be limited ahead of the publication of Canada’s New Housing Price Index on Thursday.