Eurozone CPI Flash, US Core PCE Price Index, US Unemployment Claims

The EUR/USD pair rose for a third consecutive session ending the session 0.56% higher. Recent data releases from the US put pressure on the US Dollar, while inflation figures in the Eurozone suggest that additional tightening may continue from the European Central Bank.

The annual inflation rate in Germany fell from 6.2% to 6.1% in August. In Spain, the annual rate rose from 2.3% to 2.6% as expected, with the core rate remaining above 6%. Despite the downward trend, inflation levels remain too high, leaving room for potential tightening from the ECB.

In the US, data released on Wednesday showed a smaller than expected increase in private payrolls, with 177,000 jobs added compared to the market consensus of 195,000. Q2 GDP was also revised lower.

Gold prices continued to move on the upside on Wednesday ending the session 0.42% higher posting gains for a third day in a row, as a fresh batch of weak U.S economic readings reinforced the view that the Federal Reserve may have to hit pause on its interest rate hikes.

Benchmark 10-year yields dropped to their lowest since Aug. 11 while the dollar slipped to a two-week low after U.S. GDP data showed a softening of the economy in the second quarter. A drop in U.S. job openings added to the sentiment.

Oil prices posted moderate gains on Wednesday, with the WTI contract on iForex platform ending the session 0.31% higher after the release of U.S government data which showed tighter-than-expected crude supplies. At the same time concerns about the Chinese economy limited gains.

U.S crude inventories fell by 10.6 million barrels in the last week to 422.9 million barrels, Energy Information Administration data showed on Wednesday. Elsewhere, analysts expect Saudi Arabia, the world's biggest oil exporter, to extend its voluntary output cut into October, keeping oil supply tight.

U.S. stocks ended higher, and the dollar extended its losses on Wednesday, as a slew of disappointing economic data raised the probability that the Federal Reserve will press the pause button in its efforts to rein in inflation. U.S main indexes ended the session higher with the US 500 and US 30 posting moderate gains of 0.35% and 0.30% respectively while the US Tech 100 ended the day 0.44% higher.

Fresh gross domestic product numbers showed the U.S. economy expanded 2.1% in the second quarter, slower than a preliminary estimate of a 2.4% growth.

Market Participants are now looking to the personal consumption expenditures price index, the Fed's preferred measure of inflation, and non-farm payroll numbers for more clues on interest rates.