07:50 AM EST, 03/07/2024 (MT Newswires) -- The US dollar fell against its major trading partners early Thursday, except for a small improvement against the euro, before a second day of testimony from Federal Reserve Chairman Jerome Powell and a busy day of economic data releases.

Powell's testimony is set to begin at 10:00 am ET before the Senate Banking Committee. On Wednesday, Powell told the House Financial Services Committee that the Federal Open Market Committee would like to see more evidence inflation is slowing "sustainably" toward the 2% goal before "carefully and thoughtfully" considering interest rate reductions.

Weekly initial jobless claims, monthly trade data for January and revised Q4 productivity data are all scheduled to be released at 8:30 am ET, followed by natural gas stocks at 10:30 am ET, the Atlanta Fed's gross domestic product Nowcast around midday and consumer credit data for January at 3:00 pm ET.

Earlier Thursday, outplacement firm Challenger, Gray & Christmas reported that layoff intentions rose in February from January and were well above a year ago. The transportation and technology industries led the increase and cost-cutting was the most-often cited reason for layoffs.

At the same time, Challenger reported that hiring plans rose from January but combined hiring for the first two months of the year was the lowest on record.

President Joseph Biden is schedule to deliver his annual State of the Union address to Congress at 9:00 pm ET.

A quick summary of foreign exchange activity heading into Thursday:

EUR-USD fell slightly to 1.0896 from 1.0899 at the Wednesday US close but was up from a level of 1.0876 at the same time Wednesday morning. The European Central Bank's policy statement is scheduled to be released at 8:15 am ET, followed by a press conference at 8:45 am ET. No change in rates is expected. There are no Eurozone data releases on Thursday's schedule.

GBP-USD rose to 1.2755 from 1.2732 at the Wednesday US close and 1.2730 at the same time Wednesday morning. UK home prices rose less than expected in February, lowering the year-over-year rate. The next Bank of England meeting is scheduled for March 21.

USD-JPY fell to 147.7695 from 149.4104 at the Wednesday US close and 149.7249 at the same time Wednesday morning. Japanese wage income growth accelerated in January, according to data released overnight. Bank of Japan board member Junko Nakagawa said the Japanese economy is making progress toward the 2% inflation target. The next BoJ meeting is set for March 18-19.

USD-CAD fell to 1.3496 from 1.3515 at the Wednesday US close and 1.3576 at the same time Wednesday morning. The Bank of Canada left interest rates unchanged Wednesday, as expected, and cited upside risks to inflation in saying it is too early to consider rate cuts. The next BoC monetary policy meeting is scheduled for April 10. Canada building permits and trade data, both for January, are due to be released at 8:30 am ET.