The dollar index against a group of six major currencies was a shade higher at 89.538 after gaining 0.1 percent overnight.
The dollar rose 0.3 percent to 107.295 yen after dipping to 106.885 on Tuesday, buoyed as improving risk appetite reduced demand for its Japanese peer, a currency often sought in times of market turmoil and political tensions.
The euro was little changed at $1.2372.
• The Euro is struggling to find lasting direction against the US Dollar but longer-term positioning continues to argue for a broadly bearish trend bias. Still, the medium-term view carries bullish elements that may yet carry potent supportive implications.
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A more appropriate place for the beginning of a major bearish reversal seems difficult to imagine. Yet, a look at the daily chart reveals a well-defined Triangle pattern following an upswing from November 2017 lows. The setup typically precedes continuation, hinting an upside breakout might be in the works.
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From a tactical perspective, opting to keep in play the second half of a short EUR/USD trade from 1.2407 seems prudent after partial profit was booked on hitting the trade’s first objective. Confirmation of the Triangle on a close above 1.2448 would also invalidate the position’s underlying logic, triggering a stop-loss.
In the meantime, the series of lower highs set from the double top below the 1.26 figure continues to hold and risk/reward parameters suggest there is room to wait and see if the weight of the long-term down trend will prevail. If it does, scale-up opportunities will be actively pursued.
• Ahead of a widely anticipated summit between President Donald Trump and North Korean leader Kim Jong Un, CIA Director Mike Pompeo met with the dictator earlier this month, the Washington Post reported.
The face-to-face meeting between Pompeo, who was recently nominated to be the new secretary of state, and Kim took place in North Korea over the Easter weekend and marks the highest-level sit-down between the two countries since 2000, the Washington Post said.
Reuters subsequently reported that a senior U.S. official had confirmed Pompeo and Kim's meeting.
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• After recently indicating he could consider rejoining the massive Pacific trade pact, President Donald Trump said he now doesn't think the Trans-Pacific Partnership is good for the world's largest economy.
Following Tuesday'sbilateral meeting with Japanese Prime Minister Shinzo Abe at the Trump-owned Mar-a-Lago resort in Florida, the U.S. leader took to Twitter to criticize the current TPP agreement, saying it had "too many contingencies and no way to get out." He also expressed a preference for bilateral trade deals, calling them more "profitable."
• We expect a bumpy road to China-US negotiations, says economist We expect a bumpy road for China-US negotiations, says economist
If China's economic growth were to be hit by trade tensions with the U.S., the effect would be felt only later in this year, JPMorgan said Wednesday.
That's because extensive negotiations have to be carried out by the two economic giants to iron out frictions that have seen both threatening tariffs on each other's products, according to Haibin Zhu, JPMorgan's chief China economist. And they're likely to head off a trade war.
"And it probably won't affect immediate growth outlook, but it may have some net impact — say the end of this year or 2019," he added.
• A South Korean official on Wednesday said the country would consider negotiating a peace treaty with North Korea following the rogue state's denuclearization, according to local news outlet Yonhap.
That followed daily newspaper Munhwa Ilbo reporting on Tuesday that the two countries were already in talks to announce a permanent end to the officially declared military conflict between them.
Ahead of a summit next week between North Korean premier Kim Jong Un and South Korean President Moon Jae-in, lawmakers from the neighboring states were thought to be negotiating the details of a joint statement that could outline an end to the confrontation.
Kim and Moon could also discuss returning the heavily fortified demilitarized zone separating them to its original state, Munhwa Ilbo said.
• Oil prices rose on Wednesday, lifted by a reported fall in U.S. crude inventories and by the ongoing risk of supply disruptions.
Brent crude oil futures LCOc1 were at $72.07 per barrel at 0659 GMT, up 49 cents, or 0.7 percent, from their last close.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were up 49 cents, or 0.7 percent, at $67.01 a barrel.
Reference: Reuters, CNBC, DailyFX
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