U.S. Dollar Down On Fed Hopes

(RTTNews) - The U.S. dollar lost ground against its major counterparts on Thursday, as comments from Federal Reserve Chair Jerome Powell sparked speculation that the central bank has neared the end of the tightening cycle.

The Fed raised the interest rate by 25 basis points as expected and said future rate increases would be "data dependent."

"We will continue to take a data-dependent approach in determining the extent of additional policy firming that may be appropriate," Powell said in the press conference.

Powell indicated that a cut is possible next year if inflation hovers consistently near the Fed's target.

Market participants will focus on U.S. GDP data for the second quarter, durable goods orders and weekly jobless claims figures due later today for more direction.

The greenback fell to a 3-day low of 1.1144 against the euro and a 2-day low of 1.3159 against the loonie, off its early highs of 1.1077 and 1.3210, respectively. The next possible support for the currency is seen around 1.13 against the euro and 1.30 against the loonie.

The greenback declined to a 9-day low of 0.8555 against the franc and an 8-day low of 1.2995 against the pound, from its early highs of 0.8617 and 1.2923, respectively. The currency may locate support around 0.83 against the franc and 1.31 against the pound.

The greenback held steady against the yen, the kiwi and the aussie, after falling to 1-week lows of 139.37, 0.6273 and 0.6821, respectively in the previous session. The greenback was trading at 140.23 against the yen, 0.6208 against the kiwi and 0.6757 against the aussie at yesterday's close.

Looking ahead, at 8:15 am ET, the European Central Bank is set to announce its monetary policy decision. The ECB is expected to raise the key refi rate by 25 basis points to 4.25 percent from 4 percent.

U.S. weekly jobless claims for the week ended July 22, GDP data for the second quarter and durable goods orders, pending home sales, advance goods trade balance and wholesale inventories, all for June, will be released in the New York session.