08:04 AM EDT, 08/01/2024 (MT Newswires) -- The US dollar rose against its major trading partners early Thursday before a busy day of economic data releases and after the Federal Open Market Committee decided to maintain the current 5.25% to 5.50% target range for the federal funds rate, but shifted its language toward a more dovish position that further solidified the chance of a rate cut at the next meeting in September.

Federal Reserve Chairman Jerome Powell did not rule out the possibility of a rate reduction at the September meeting, saying that it could be appropriate if conditions evolve as expected, but cautioned that no decision has been made at this point.

Weekly jobless claims and preliminary productivity data for Q2 are due for released at 8:30 am ET, followed by S&P Global manufacturing data for July at 9:45 am ET, and the Institute for Supply Management's manufacturing data for July and construction spending data for June, both at 10:00 am ET.

Weekly natural gas stocks are due for release at 10:30 am ET and the Atlanta Federal Reserve is due to update its gross domestic product Nowcast estimate for Q3 around midday.

Earlier Thursday, outplacement firm Challenger, Gray & Christmas reported that layoff intentions declined in July from the previous month but were above year-ago levels. At the same time, hiring intentions were the lowest since December 2023 and the lowest for a July report on record, suggesting a slowdown in the job market.

A quick summary of foreign exchange activity heading into Thursday:

EUR/USD fell to 1.0794 from 1.0824 at the Wednesday US close and 1.0837 at the same time Wednesday morning. The Eurozone manufacturing purchasing managers' index held steady below the breakeven point in July while the unemployment rate rose slightly in June, data released earlier Thursday showed. The next European Central Bank meeting is scheduled for Sept. 12.

GBP/USD fell to 1.2773 from 1.2856 at the Wednesday US close and 1.2847 at the same time Wednesday morning. The Bank of England lowered its target rate by 25 basis points on Thursday, as expected, on a tight 5-4 vote. The next BoE meeting is scheduled for Sept. 19. Released prior to the policy announcement, UK manufacturing PMI rise more than expected in July while home price growth was stronger than expected in the same month.

USD/JPY rose to 150.4511 from 149.9961 at the Wednesday US close and 150.3020 at the same time Wednesday morning. Japanese manufacturing PMI declined in July below the breakeven point, data released overnight showed. The next Bank of Japan meeting is scheduled for Sept. 19-20.

USD/CAD rose to 1.3824 from 1.3806 at the Wednesday US close and was little changed from a level of 1.3825 at the same time Wednesday morning. Canadian manufacturing PMI for July is set to be released at 9:30 am ET. The next Bank of Canada meeting is scheduled for Sept. 4.