FX Today: UK inflation data steal the show

The US Dollar (USD) managed to regain traction and clocked a marked bounce on turnaround Tuesday. The Greenback's recovery came on the back of easing trade tensions and alleviated fears surrounding the US credit risk.

Here's what to watch on Wednesday, October 22:

The US Dollar Index (DXY) clinched its third consecutive daily advance, rising to four-day highs despite US Treasury yields trading on the back foot across the curve. An apathetic US calendar will feature the weekly MBA Mortgage Applications and the EIA's report on US crude oil inventories.

EUR/USD extended its correction, hitting multi-day lows and challenging the 1.1600 neighbourhood. The ECB's de Guindos, Buch and Lagarde are due to speak.

GBP/USD remained on the back foot, breaking below the 1.3400 support to reach multi-day troughs. The UK Inflation Rate will take centre stage, seconded by the speech by the BoE's Woods.

USD/JPY advanced to six-day peaks north of the 152.00 barrier as Japanese politics weighed down on the Yen. The Balance Trade results will be the sole release in Japan.

AUD/USD kept its choppiness well in place, this time reversing Monday's strong advance and returning to the sub-0.6500 zone. The advanced SP& Global Manufacturing and Services PMIs alongside the speech by the RBA's Bullock are next on tap in Oz on October 24.

WTI prices extended their downtrend for the fourth day in a row, approaching the $56.00 mark per barrel once again, as oversupply worries continued to hurt the sentiment.

Gold has embarked on a deep correction soon after hitting all-time highs, coming close to the $4,100 region per troy ounce amid a firm US Dollar and easing trade concerns. Silver prices collapse more than 8%, slipping back below the $48.00 region per ounce, or two-week lows.