USD slipped against most of its major rivals in the European session on Wednesday as investors continued to weigh the latest remarks from the Federal Reserve chairman Jerome Powell while awaiting several important U.S. jobs reports.
The U.S. Dollar Index (DXY), measuring the U.S. currency's value relative to a basket of foreign currencies, decreased 0.10% from the previous close to 105.61.
Speaking on the ECB Forum on Central Banking on Tuesday, the Fed’s chair Powell stated that the U.S. is seen to be back on a disinflationary path but reiterated that the policymakers want to be more confident that inflation is moving down to 2% before cutting interest rates.
Meanwhile, the U.S. Job Openings Report (JOLTS) for May, released yesterday, showed an unexpected increase in openings to 8.140 million from a downwardly revised 7.919 million (from 8.059 million) in April.
The better-than-expected JOLTS report added to speculations that strength in the domestic labour market could complicate the U.S. central bank’s attempts to slow inflation further in the summer months.
Later in the day, investors will receive a few other labour market data releases, including the ADP’s private sector employment report for June and weekly jobless claims. On Friday, the crucial June employment situation report will be published.