Geopolitics Ignite Market Anxiety Ahead of Key US Inflation Data

Geopolitical tensions are escalating ahead of key US inflation data, causing oil and gold prices to rise on Wednesday.

The yen was mostly flat against the dollar after Japan and the United States intervened in currency markets for the first time in years. The US and Yemen's Iran-aligned Houthis reported separate attacks on shipping, while Asia was rattled by an early morning missile launch by North Korea.

Skye Masters, head of markets research at National Australia Bank, said 'Everyone's got their eyes on the CPI report.' If the print comes in at zero, he expects a reasonable rally in Treasuries as the market unwinds expectations for the Fed tightening.