OTTAWA (dpa-AFX) - The U.S. dollar continued to be strong against other major currencies in the European session on Wednesday, weighed down by Federal Reserve Chairman Jerome Powell's comments that equity prices are fairly highly valued by many measures.
Following last week's decision to cut interest rates for the first time this year, Fed Chair Powell delivered remarks before the 2025 Greater Providence Chamber of Commerce Economic Outlook Luncheon in Warwick, Rhode Island, on Tuesday.
Powell noted in prepared remarks that near-term risks to inflation are tilted to the upside and risks to employment to the downside, which he called a 'challenging situation.'
Powell said the Fed's decision to cut interest rates by 25 basis points last week reflected increased downside risks to employment that shifted the balance of risks to achieving the central bank's dual goals.
In the European trading today, the U.S. dollar rose to 2-day highs of 1.1763 against the euro and 1.3472 against the pound, from early lows of 1.1817 and 1.3526, respectively. If the greenback extends its uptrend, it is likely to find resistance around 1.16 against the euro and 1.33 against the pound.
Against the yen and the Swiss franc, the greenback advanced to 2-day highs of 148.35 and 0.7944 from early lows of 147.52 and 0.7913, respectively. The greenback may test resistance near 149.00 against the yen and 0.80 against the franc.
The greenback climbed to nearly a 2-week high of 1.3876 against the Canadian dollar, from an early low of 1.3838. On the upside, 1.39 is seen as the next resistance level for the greenback.
Looking ahead, U.S. MBA mortgage approvals data, U.S. new home sales data for August, U.S. EIA crude oil data and building permits for August are slated for release in the New York session.
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