The US dollar rose slightly as investors awaited testimony from Federal Reserve (Fed) Chairman Jerome Powell before Congress at the New York session.
Any Powell’s statement on the direction of the upcoming monetary tightening and its impact on the economy, will be scrutinized by market players.
At the time of writing, the dollar index that measures the strength of the greenback dollar traded slightly higher at 104.60 against a basket of major currencies.
Prior to that, investors will be first seen with UK inflation data to be released in the European session, where it is expected to continue to show improvement in May.
The horizontal trading of the pound indicates the vigilance of investors ahead of the release of the data. The Chief Economist of the Central Bank of England (BOE), Huw Pill signaled that they are ready to act if they see evidence of continued price pressures.
Meanwhile, the euro re -erased its previously recorded gains by declining to around 1.0500.
Earlier, the currency had received support from statements by several European Central Bank (ECB) policymakers who noted the possibility of potential rates being raised higher at the September meeting, by 50 basis points from the expected 25 basis points.
Meanwhile, the yen continued to hit new records after falling to its latest 24 -year low of 136.70 against the USD in the previous session.
