Forex News: U.S. Dollar Eases After Powell's Speech

U.S. Dollar Eases After Powell's Speech

(RTTNews) - The U.S. dollar retreated against its most major counterparts in the New York session on Wednesday, as Federal Reserve Chair Jerome Powell gave no comments on monetary policy or guidance.

The dollar index eased to 105.53.

The yield on the 10-year U.S. treasury note dropped to 4.544 percent. Yields move inversely to bond prices.

Markets are expecting the Fed to begin trimming rates later in 2024.

On the economic data front, U.S. wholesale inventories edged up unexpectedly in September.

Wholesale inventories rose by 0.2 percent in September after edging down by 0.1 percent in August. Economists had expected wholesale inventories to come in unchanged.

The greenback eased to 1.0714 against the euro and 1.2300 against the pound, from its early 5-day highs of 1.0659 and 1.2241, respectively. The greenback is seen finding support around 1.10 against the euro and 1.26 against the pound.

The greenback weakened to a 2-day low of 0.8976 against the franc, down from an early 5-day high of 0.9024. The greenback is poised to challenge support around the 0.87 level.

In contrast, the greenback climbed against the yen, touching a 1-week high of 150.98. If the currency rises further, it may find resistance around the 155.00 level.

The greenback advanced to a 5-day high of 0.5910 against the kiwi and a 6-day high of 1.3805 against the loonie, off its prior lows of 0.5942 and 1.3754, respectively. The next possible resistance for the greenback is seen around 0.57 against the kiwi and 1.41 against the loonie.

The greenback was higher against the aussie, at 0.6407. The currency is likely to challenge resistance around the 0.62 level.

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