The dollar traded mixed on Wednesday as the market was pulled in different directions by U.S. inflation that failed to live up to investors' worst fears and rising tensions between the United States and Iran. Monthly core and headlineinflation came in at or below forecasts while the annual figures rose as expected, remaining well above the Fed's 2% target. Meanwhile, President Donald Trump said the U.S. would attack Iran again "very hard" following one of the most significant exchanges of fire overnight since an April ceasefire, accusing Tehran of taking too long to negotiate a deal.

U.S. Treasury yields were steady to higher with the 2s-10s curve steepening by 1.65bps.

The S&P 500 nursed a loss of 1.34% by New York afternoon as Wall Street extended declines, with technology stocks remaining under pressure, while the renewed tensions between the United States and Iran overshadowed the inflation reading. Brent and WTI crude both rallied 2%, fueled by the rising Iran tensions and a larger-than-expected drawdown in U.S. crude inventories.

Gold tumbled 3.75% on worries about Iran war spillover into inflation, and copper fell 1% on the hostilities.

Heading toward the close: EUR/USD +0.05%, USD/JPY +0.07%, GBP/USD +0.01%, AUD/USD -0.24%, DXY +0.02%, EUR/JPY +0.12%, GBP/JPY +0.08%, AUD/JPY -0.2%.(Burton Frierson)