07:40 AM EST, 03/06/2024 (MT Newswires) -- The US dollar declined against its major trading partners early Wednesday as markets turn their attention to the first day of testimony from Federal Reserve Chairman Jerome Powell.

Powell's testimony is set to begin at 10:00 am ET, with his prepared statement followed by questions from members of the House Financial Services Committee. Powell is due to repeat the same process on Thursday at 10:00 am ET before the Senate Banking Committee.

ADP private payrolls for February are scheduled for release at 8:15 am ET, followed by wholesale inventories and job openings data, both for January, at 10:00 am ET and weekly energy stocks data at 10:30 am ET. The Atlanta Fed is expected to update its gross domestic product Nowcast estimate for Q1 around midday.

Earlier Wednesday, the Mortgage Bankers Association said a small decline in mortgage rates pushed up weekly applications in the week ended March 1, showing the sensitivity of home buyers to rate moves.

Later in the day, San Francisco Fed President Mary Daly is set to speak at 12:00 pm, followed by the Fed's Beige Book release at 2:00 pm and an appearance by Minneapolis Fed President Neel Kashkari at 3:15 pm ET. Daly is voter on the Federal Open Market Committee this year, while Kashkari next votes in 2026.

A quick summary of foreign exchange activity heading into Wednesday:

EUR-USD rose to 1.0876 from 1.0857 at the Tuesday US close and 1.0850 at the same time Tuesday morning. Eurozone retail sales rose slightly in January after a decline in the previous month, data released earlier Wednesday showed. The next European Central Bank meeting is scheduled for Thursday.

GBP-USD rose to 1.2729 from 1.2705 at the Tuesday US close and 1.2678 at the same time Tuesday morning. The UK's construction purchasing managers' index rose in February but still indicated modest contraction in the sector, data released earlier Wednesday showed. The next Bank of England meeting is scheduled for March 21.

USD-JPY fell to 149.7251 from 150.0644 at the Tuesday US close and 150.4464 at the same time Tuesday morning. There were no Japanese data released overnight. The next BoJ meeting is set for March 18-19.

USD-CAD fell to 1.3577 from 1.3592 at the Tuesday US close and 1.3594 at the same time Tuesday morning. The Bank of Canada's statement is set to be released at 9:45 am ET, when no change in rates is expected, followed by a press conference at 10:30 am ET. Canada labor productivity data for Q4 are scheduled to be released at 8:30 am ET, followed by Canada IVEY PMI data for February at 10:00 am ET.