EURUSD Euro vs United States Dollar

Wednesday, the U.S. dollar showed muted reaction to a speech by the Fed Chair Janet Yellen before the Congress, indicating the Fed's plan to impose stricter capital requirements on large U.S. banks to cope up with the effects of a downturn.

"The existing capital conservation buffer would be replaced with a risk-sensitive, firm-specific buffer that is sized based on stress test results," prepared remarks for hearing before the House of Representatives Financial Services Committee showed.

Yen gave little indication about the outlook for the economy or monetary policy in her testimony.

Data from the Commerce Department showed that new orders for U.S. manufactured durable goods came in flat in August, as a rise in orders for transportation equipment was offset by decreases in orders for other manufactured goods.

The Commerce Department said durable goods orders were virtually unchanged in August after jumping by a revised 3.6 percent in July.

Speaking at the Institutional Investor Conference in Minneapolis, Minneapolis Fed President Neel Kashkari said that the Fed should wait before raising borrowing costs.

He downplayed the view that strong job gains in a low rate environment could create inflationary pressures.

The greenback was trading higher against most major counterparts in European trading.

The greenback, having advanced to 1.2981 against the pound at 4:00 am ET, retreated to a 5-day low of 1.3032 in a short while and held steady thereafter. The pair closed yesterday's trading at 1.3022.

Bank of England Deputy Governor Minouche Shafik said more easing will be required at some point to ensure that a slowdown in economic activity does not turn into more pernicious.

The UK faces a sizeable economic shock in the wake of the referendum.

The greenback held steady against the euro with the pair trading at 1.1211, after easing from its early European session's weekly high of 1.1182. The euro-greenback was valued at 1.1209 when it ended Tuesday's deals.

While speaking to European Affairs committee in Berlin, Draghi defended the ECB's negative rate policy, saying the present low rate-regime would help to return higher interest rates in the future.

"Our monetary policy has supported growth and employment and will eventually bring inflation back to our aim," he added.

The greenback eased back to 0.9691 against the Swiss franc, off its early 5-day high of 0.9742. At yesterday's close, the pair was valued at 0.9707.

Survey data from the investment bank UBS showed that Swiss consumption indicator climbed in August on the back of a resurgence in tourism and above-average car sales.

The UBS Consumption Indicator rose to 1.53 points from 1.45 in July, which was revised from 1.32.

Following an advance to 100.82 against the Japanese yen at 4:00 am ET, the greenback edged down slightly to 100.45. On the downside, the greenback may locate support around the 99.00 mark.

Survey figures released by the Shoko Chukin Bank revealed that Japan's small business confidence improved more than expected in September.

The small business sentiment indicator climbed to 47.7 in September from 46.3 in the prior month. The reading stayed above the expected level of 47.

Looking ahead, at 4:30 pm ET, Federal Reserve Bank of Cleveland President Loretta Mester is scheduled to speak before the Greater Cleveland Partnership, in Cleveland.

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