The US dollar is higher today after two weeks of steady selling.
It's been supported by a rise in Treasury yields of 8-9 bps across the curve and comments from the Fed's Schmid, who didn't sound in a rush to cut rates. Economic data today also underscored an economy that's fine, with initial jobless claims and the S&P Global US services PMI both slightly better than expectations.
Yesterday the euro hit a one-year high against the US dollar but it was reeled back in today, falling 40 pips.
EUR/USD 10 mins
Tomorrow's speech from Powell will surely be a market mover. What people are looking for is a sense of the cadence of cuts and the willingness to cut deeper if needed. We're also looking for indications on where Powell thinks the terminal rate is.