Powell emphasized that premature cuts could undermine inflation control and potentially force a policy reversal. His comments helped steady the dollar, limiting downside momentum.

Packed U.S. Data Calendar in Focus

Attention now turns to a busy U.S. economic schedule. The final estimate for second-quarter GDP is expected to confirm growth at 3.3%, while the GDP price index is forecast to hold at 2.0%.

Weekly jobless claims are projected at 233K, a slight increase from 231K previously, suggesting labor market resilience. Core durable goods orders are expected to decline 0.1% after last month’s 1.0% gain, while headline orders are forecast to contract 0.3%.

Traders are also monitoring the U.S. goods trade balance, expected at –$95.7 billion, and wholesale inventories, seen rising 0.2%. Later in the day, remarks from several Federal Reserve officials, including Miran, Goolsbee, Schmid, and Williams, may add clarity on the policy outlook.

US Dollar Index (DXY) – Technical Analysis