07:42 AM EDT, 07/31/2024 (MT Newswires) -- The US dollar fell against its major trading partners early Wednesday before a busy day that starts with ADP private payrolls data for July at 8:15 am ET.

Employment cost data for Q2 is due for release at 8:30 am ET, at the same time as the US Treasury's quarterly refunding.

The Chicago puchasing managers' index for July is due for release at 9:45 am ET, followed by pending home sales data for June at 10:00 am ET and weekly EIA petroleum stocks at 10:30 am ET.

The Federal Open Market Committee's policy statement is expected at 2:00 pm ET, followed by Federal Reserve Chairman Jerome Powell's press conference at 2:30 pm ET. The CME FedWatch tool currently shows a 96.9% chance of no change in the current 5.25% to 5.50% target range for the federal funds rate being priced in and a 3.1% chance of a 25 basis point reduction to a range of 5% to 5.25%.

Earlier Wednesday, the Mortgage Bankers Association said mortgage applications declined further in the week ended July 26, but the average 30-year fixed mortgage rate held steady at 6.82%.

A quick summary of foreign exchange activity heading into Wednesday:

EUR/USD rose to 1.0832 from 1.0810 at the Tuesday US close and was little changed from a level of 1.0833 at the same time Tuesday morning. Eurozone consumer prices were flat in July, but the year-over-year growth rate accelerated modestly, data released earlier Wednesday showed. The next European Central Bank meeting is scheduled for Sept. 12.

GBP/USD rose to 1.2841 from 1.2833 at the Tuesday US close but was down from 1.2853 at the same time Tuesday morning. There are no UK data on Tuesday's schedule. The next Bank of England meeting is scheduled for Thursday when the BoE is expected to lower interest rates by 25 basis points.

USD/JPY fell to 150.4906 from 153.2764 at the Tuesday US close and 154.8236 at the same time Tuesday morning. The Bank of Japan decided to raise its target rate to 0.25%, the highest since 2008, from a range of 0% to 0.1% and reduced bond buying at its meeting Tuesday, adding that it would be open to further rate increases if needed. The next BoJ meeting is scheduled for Sept. 19-20. Data released overnight showed a slight uptick in Japanese household confidence in July but a decline in June housing starts.

USD/CAD fell to 1.3831 from 1.3854 at the Tuesday US close and 1.3849 at the same time Tuesday morning. Canadian gross domestic product for June is scheduled to be released at 8:30 am ET. The next Bank of Canada meeting is scheduled for Sept. 4.