2018.06.2005:50:00UTC+00U.S. Dollar Strengthens Against Majors

The U.S. dollar climbed against its major counterparts in early European deals on Wednesday, as fears over a US-China trade trade war faded and traders awaited U.S. existing home sales data later in the day.

Helping ease concerns about the outlook for the world's second-largest economy, the People's Bank of China said in a working paper on Tuesday that China should appropriately reduce its reserve requirements to ease burdens on financial institutions and smooth the interest rate transmission mechanism.

The central bank also injected funds into the financial system via its medium-term lending facility to offset liquidity pressure.

Federal Reserve Chairman Jerome Powell, European Central Bank President Mario Draghi, Bank of Japan Governor Haruhiko Kuroda and Reserve Bank of Australia Governor Philip Lowe are due to participate in a panel discussion at the ECB Forum later today.

The Bank of England and Swiss National Bank are meeting on Thursday, but no rate hikes are expected.

The currency has been trading in a positive territory against its major counterparts in the Asian session.

The greenback strengthened to a 2-day high of 0.9979 against the Swiss franc, after having fallen to 0.9936 at 5:00 pm ET. The greenback is seen finding resistance around the 1.01 level.

The greenback edged up to 1.1537 against the euro, following a decline to 1.1596 at 7:45 pm ET. The next likely resistance for the greenback is seen around the 1.13 level.

The greenback appreciated to 110.25 against the yen and held steady thereafter. On the upside, 112.00 is possibly seen as the next resistance level for the greenback.

The U.S. currency climbed to more than a 7-month high of 1.3148 against the pound, from a low of 1.3179 touched at 5:00 pm ET. Next key resistance for the greenback is likely seen around the 1.30 level.

The greenback strengthened to near a 5-week high of 0.6881 against the kiwi and a 1-year high of 1.3311 against the loonie, off its early lows of 0.6917 and 1.3269, respectively. The next possible resistance for the greenback is seen around 0.67 against the kiwi and 1.35 against the loonie.

The greenback bounced off slightly to 0.7381 against the aussie, from a low of 0.7409 seen at 1:30 am ET. The greenback is poised to challenge resistance around the 0.72 level.

Looking ahead, U.S. current account data for the first quarter and existing home sales for May are due in the New York session.

Fed Chair Jerome Powell, ECB President Mario Draghi, BoJ Governor Haruhiko Kuroda and RBA Governor Philip Lowe will speak at the conclusion of the Sintra conference in Portugal at 9:30 am ET.