USD index holds close to multi-week highs.....>

FOREX: USD index holds close to multi-week highs

-Global inflation data took focus Wednesday, with UK numbers equalling the BoE's

2.0% target, although PPI data missed slightly. GBP was relatively nonplussed,

although GBP/USD had already hit a fresh cycle low of $1.2382 in early European

hours.

-The USD index holds close to 97.588 and multi-week highs after a nascent rally

late in the Tuesday session. Fed speakers due until the end of the week will be

carefully watched as the final communications before the blackout period begins

for the July 31st decision.

-European equity markets are generally lower, although US futures are positive,

indicating a higher open today. The mixed sentiment picture has US 10yr yields

sitting broadly flat at 2.10%, well below yesterday's highs. Commodity prices

are slightly firmer, with WTI and Brent crude futures higher by just shy of 1%.

-The data calendar is lighter Wednesday, with just Canadian inflation data and

US housing starts on the docket. Fed's George is due to speak ahead of the

release of the Fed's Beige Book.