07:51 AM EST, 12/18/2024 (MT Newswires) -- The US dollar rose against its major trading partners early Wednesday, except for a decline versus the euro, as markets turn their attention to the Federal Open Market Committee's post-meeting statement at 2:00 pm ET and Federal Reserve Chairman Jerome Powell's press conference at 2:30 pm ET.

The CME's FedWatch tool currently shows a 95.4% chance of a 25 basis rate reduction to a range of 4.25% to 4.50% being priced in and a 4.6% chance of no change from the current 4.50% to 4.75% range.

Earlier Wednesday, the Mortgage Bankers Association said an uptick in mortgage rates pushed mortgage applications down modestly in the week ended Dec. 13, the first decline in five weeks. The MBA said it will not publish its weekly data next week due to the holiday and will instead combine data for the weeks ended Dec. 20 and Dec. 27 into one report to be released Jan. 2.

Home building data for November are due to be released at 8:30 am ET, at the same time as current account data for Q3.

Weekly EIA petroleum stocks inventory data are due at 10:30 am ET and the Atlanta Federal Reserve is due to release an update to its gross domestic product growth Nowcast estimate for Q4 around midday.

A quick summary of foreign exchange activity heading into Wednesday:

EUR/USD rose to 1.0498 from 1.0490 at the Tuesday US close and 1.0492 at the same time Tuesday morning. Eurozone consumer prices fell as expected in November, but the year-over-year rate accelerated modestly, according to data released overnight. Core prices also declined in November, leaving the year-over-year rate in line with previous month. European Central Bank Chief Economist Philip Lane said overnight there would be a negative impact on European growth from higher US tariffs, but said that inflation impact is uncertain. The next European Central Bank meeting is scheduled for Jan. 30.

GBP/USD declined slightly to 1.2707 from 1.2709 at the Tuesday US close but remained above a level of 1.2700 at the same time Tuesday morning. UK consumer prices rose as expected in November while core prices were flat, allowing the year-over-year rates to accelerate modestly. Also released earlier Wednesday, business expectations declined sharply in December. The next Bank of England meeting is scheduled for Thursday, when no change in rates is expected.

USD/JPY rose to 153.7271 from 153.5200 at the Tuesday US close but was below a level of 153.9221 at the same time Tuesday morning. The Japanese trade gap narrowed in November according to data released overnight. The Bank of Japan is expected to leave its target rate unchanged when it's post-meeting statement is released Wednesday evening around 9:30 pm ET.

USD/CAD rose to 1.4321 from 1.4313 at the Tuesday US close and 1.4280 at the same time Tuesday morning. There are no Canadian data on Wednesday's schedule. The next Bank of Canada meeting is scheduled for Jan. 29.