The dollar index firmed on Wednesday after forecast-beating ISM non-manufacturing PMI helped Treasury yields reverse an early slide that had weighed on the U.S. currency and boosted Fed hike expectations for November above 50%.

EUR/USD headed toward the NorAm close +0.12%.
Current rate hike expectations for the ECB mirror the Fed, with a skip currently penciled in for September and odds near 50% for a hike on Oct 26.

Traders shift focus to euro zone employment data on Thursday and Q2 GDP for hints at near-term ECB policy.

USD/JPY clawed its way back to break even, recovering from earlier losses that received encouragement from comments by Japan’s top currency diplomat, Masato Kanda, who warned about speculative yen selling.

Rising Treasury yields and the upbeat ISM data lifted USD/JPY back toward the early Asia 2023 high by 147.82.

GBP/USD dipped to early June 2023 lows below 1.25, receiving an added nudge lower from comments by BoE Governor Andrew Bailey, Deputy Governor Jon Cunliffe and perennial dove Swati Dhingra who, to varying degrees, raised questions about the necessity for further rate hikes.

The less hawkish tone puts key support at the 200-DMA by 1.2425 in focus, and a close below sets up a move toward 1.1805 the March 8 2023 low.

The rise in U.S. yields weighed on precious metals.
Gold slid 0.4% to $1,917 and silver dipped 1.5% to $23.17.

Cryptos shurgged off weight of high rates.
Bitcoin rose 0.5% to $25.8k and ether gained 0.55% to $1,641.30 on talk the G20 may look to set up a global framework for cryptos.

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