Forex today experienced cautious optimism this Wednesday, as the Asian equities tracked the Wall Street risk-off slide triggered by growing US recession fears while the US dollar remained broadly weaker despite a bounce in the Treasury yields and US equity futures.

The Yen stalled its recovery near 107.65 vs. the greenback, as USD/JPY returned to the green zone in a bid to regain the 108.00 handle. Meanwhile, the pound was the weakest, as the GBP/USD slipped back below 1.2300 amid Brexit chaos and ahead of the key Brexit-related announcements. EUR/USD remained in a tight range below 1.0950.

Following a busy start to the week, Wednesday’s EUR data docket remains a thin showing, with the only UK Markit Construction PMI, due at 08:30 GMT, of note. The key focus will be on the UK PM Johnson’s announcement of his final Brexit proposal that will be submitted to the EU after his closing speech at the Annual Conservatives' Conference.

Across the Atlantic, the US ADP Employment Change report is due at 12:30 GMT and speech from the Fed official Williams would be eagerly waited for fresh signs on the US economic situation and Fed’s rate cut outlook. Also, the US political and trade developments remain in the spotlight and could have a significant impact on the market sentiment.

Oil is currently trading at $54.16 per barrel, representing 0.41% gains on the day. The energy benchmark previously weakened as activity numbers from leading global economies raised questions for future demand. Also adding to the downside is receding geopolitical fears concerning the Middle East.

Gold prices fail to remain strong as buyers await fresh signals of recent risk aversion. The yellow metal bounced off $1,455 on Tuesday as fears of global slowdown unearthed on the back of disappointing activity numbers from the key global economies.