The dollar held near 110 against the yen on Wednesday, although its gains were capped against the euro with a potentially supportive spike in U.S. yields neutralized by a similar move by their German counterparts.

EUR/USD traded near 1.1985 while USD/JPY was just below 110. USD/JPY rose to 110.30 on Tuesday, its strongest since September 1st. Risk aversion has subsided since it peaked when financial markets were nervous over the possibility of another North Korea missile launch and the threat of Hurricane Irma. At that time USD/JPY fell to 107.32, a 10-month trough.

OPEC's oil production fell for the first time in four months to 79,100 barrels a day., according to the Monthly report. OPEC has teamed with other producers, including Russia, to keep 1.8 million barrels a day of oil production off the market. Today at 1630 CET, the US Crude weekly inventory data will provide further insight. WTI trades at 48.40USD/barrel and Brent trades at 54.46 USD/barrel.

Cable hit a one-year high after a robust UK inflation report added pressure on the Bank of England to do more to support the currency. Today GBP/USD has retreated below 1.33 to 1.3270 at the time of writing.