07:53 AM EDT, 09/17/2025 (MT Newswires) -- The US dollar rose against its major trading partners early Wednesday, except for a decline versus the yen, as markets look ahead to the Federal Open Market Committee's meeting announcement at 2:00 pm ET and Federal Reserve Chairman Jerome Powell's press conference at 2:30 pm ET.

The CME FedWatch tool currently has a 94% chance priced in for a 25 basis point rate reduction to a range of 4.00% to 4.25% from the current 4.25% to 4.50% range. There is a smaller 6% chance of a 50 basis point reduction to a range of 3.75% to 4.00%.

Housing starts data for August are due to be released at 8:30 am ET, followed by weekly petroleum stocks at 10:30 am ET and an update to the Atlanta Fed's gross domestic prodct Nowcast estimate for Q3 around midday.

Earlier Wednesday, the Mortgage Bankers Association reported mortgage rates fell to their lowest point since October in the week ended Sept. 12, boosting refinancing activity by 58% from the previous week. New purchase applications saw a small 3% increase in the week.

A quick summary of foreign exchange activity heading into Wednesday:

EUR/USD fell to 1.1835 from 1.1860 at the Tuesday US close but was above a level of 1.1808 at the same time Tuesday morning. Eurozone consumer prices rose less than expected in August, keeping the year-over-year rate in line with the previous month, according to data released earlier Wednesday. The next European Central Bank meeting is scheduled for Oct. 30.

GBP/USD fell to 1.3644 from 1.3651 at the Tuesday US close but was above a level of 1.3629 at the same time Tuesday morning. UK consumer prices rose as expected in August with the year-over-year rate in line with the previous month, but the 12-month rate slowed from July, according to data released overnight. The next Bank of England meeting is scheduled for Thursday, when no change in the key interest rate is expected.

USD/JPY fell to 146.2610 from 146.4830 at the Tuesday US close and 147.0559 at the same time Tuesday morning. The Japanese trade deficit widened in August, though less than expected, according to data released overnight. The next Bank of Japan policy statement is due to be released Thursday evening US time. No change in the key interest rate is expected.

USD/CAD rose to 1.3753 from 1.3750 at the Tuesday US close but was below a level of 1.3761 at the same time Tuesday morning. The Bank of Canada is expected to lower its target policy rate by 25 basis points to 2.50% in its statement to be released at 9:45 am ET, followed by a press conference at 10:30 am ET. Prior to that, data on Canadian foreign securities purchases for July are due to be released at 8:30 am ET.