The U.S. dollar traded lower against its major counterparts in the European session on Monday, as investors await testimony from Federal Reserve Chairman Jerome Powell for more indications about the pace of rate hikes this year.
Powell will appear before the US House of Representatives’ Financial Services Committee on Tuesday to testify on the central bank’s semi-annual report on monetary policy and the economy.
Powell’s congressional testimony will be his first after taking charge as the new Fed chief earlier this month.
Traders are looking his remarks for clues regarding whether he sticks to the case for continued gradual tightening of monetary policy.
Powell is also scheduled to appear before the Senate Banking Committee on Thursday.
Today’s economic docket is relatively light, with U.S. new home sales due at 10 am ET.
U.S. treasury yields fell, with the benchmark yield on 10-year note falling 2.86 percent, while that of 2-year equivalent was down by 2.23 percent. Yields move inversely to bond prices.
The currency has been trading in a negative territory in the Asian session.
The greenback dropped to a 5-day low of 1.2355 against the euro, off its early session’s high of 1.2280. If the greenback extends slide, 1.25 is possibly seen as its next support level.
The greenback weakened to a 10-day low of 1.4070 against the pound, compared to 1.3970 hit late New York Friday. Continuation of the greenback’s downtrend may see it challenging support around the 1.43 region.
The greenback slipped to a multi-day low of 0.7893 against the aussie and held steady thereafter. The greenback ended last week’s trading at 0.7837 against the aussie.
The greenback hit a session’s low of 0.7345 against the kiwi before holding steady in subsequent deals. At Friday’s close, the pair was worth 0.7293.
The greenback declined to 0.9326 against the franc and stabilised in the course of trading session. The pair closed last week’s deals at 0.9359.
The greenback slipped to a weekly low of 106.38 against the yen, from an early 4-day high of 107.19, and held steady thereafter. The greenback-yen pair was worth 106.86 when it finished deals on Friday.
Figures from the Cabinet Office showed that Japan’s leading index declined more than initially estimated in December.
The leading index, which measures the future economic activity, dropped to a 5-month low of 107.4 in December from 108.2 in November. The reading was below the flash estimate of 107.9.
Looking ahead, at 10:00 am ET, U.S. new home sales data for January is scheduled for release.
The Bank of England Deputy Governor Jon Cunliffe speaks at the PPE Society Speaker Series in Warwick at 1:00 pm ET.