U.S. Dollar Higher On Fed Remarks

(RTTNews) - The U.S. dollar moved up against its major counterparts in the New York session on Wednesday, as hawkish comments from Fed officials lowered expectations for rate cuts this year.

On Tuesday, Fed Governor Michelle Bowman has warned of upside risks to the inflation outlook while her colleague Lisa Cook said it will be appropriate to reduce interest rates "at some point."

Investors await the release of the U.S. personal consumption expenditures (PCE) price index, the Fed's preferred measure of inflation, to assess rate cut trajectory.

Reports on durable goods orders, pending home sales, weekly jobless claims and final GDP are due on Thursday.

President Joe Biden and former President Donald Trump will participate in the first presidential debate to be held on Thursday.

Data from the Commerce Department showed that U.S. new home sales saw a substantial decrease in the month of May.

New home sales plunged by 11.3 percent to an annual rate of 619,000 in May after jumping by 2.0 percent to a revised rate of 698,000 in April.

Economists had expected new home sales to rise to an annual rate of 640,000 from the 634,000 originally reported for the previous month.

The greenback climbed to a multi-year high of 160.82 against the yen and a 2-week high of 0.8983 against the franc, off its early lows of 159.60 and 0.8938, respectively. The greenback is seen finding resistance around 163.00 against the yen and 0.92 against the franc.

The greenback appreciated to a 1-1/2-month high of 1.2617 against the pound and near a 2-month high of 1.0666 against the euro, from its early lows of 1.2693 and 1.0717, respectively. The next possible resistance for the greenback is seen around 1.24 against the pound and 1.05 against the euro.

The greenback rose to a 2-day high of 1.3703 against the loonie and a 1-1/2-month high of 0.6076 against the kiwi, reversing from its early lows of 1.3647 and 0.6128, respectively. The currency is likely to locate resistance around 1.39 against the loonie and 0.58 against the kiwi.

The greenback recovered to 0.6640 against the aussie, from an early 2-week low of 0.6688. Next key resistance for the currency is seen around the 0.64 level.