Here is what you need to know on Wednesday, July 8:

The US Dollar Index (DXY) trades near the 101.00 area, recovering modestly after two days of running in place as investors digest softer US labor data and cautious comments from Federal Reserve (Fed) officials.

The latest ADP Employment Change 4-week average eased to 21K from 24.25K, pointing to slower private hiring momentum.

However, the Greenback maintained its ground as New York Fed President John Williams said that inflation remains too high, but added that monetary policy is well-positioned and future decisions will depend on incoming data.

EUR/USD trades under pressure near 1.1415 as the Euro loses momentum against a steadier US Dollar.

GBP/USD edges lower near 1.3360 as the Sterling gives back part of its recent gains. The Pound briefly touched a multi-week high before retreating as the US Dollar (USD) recovered. Traders remain focused on the policy gap between the Fed and the Bank of England (BoE), with inflation risks still keeping both central banks cautious.

USD/JPY broke slightly higher late in the Americas session to near 161.90. Investors are also watching upcoming Japanese data, including Balance of Payments, Machine Tool Orders and Producer Price Index (PPI), for fresh clues on inflation and domestic demand.

AUD/USD falls toward 0.6930 as the Australian Dollar (AUD) loses traction despite last week's economic stabilization in China.

West Texas Intermediate (WTI) Oil rises toward $72 per barrel as renewed tensions with Iran revive supply concerns. Reports that Iran warned negotiations would not begin if threats continue kept markets alert, especially after this week's hostilities in the Strait of Hormuz.

Gold trades softer near $4,145 as the firmer US Dollar and cautious Fed outlook weigh on the non-yielding metal.