The dollar fell in European trade on Thursday against a basket of major rivals, sharpening losses for the third straight session and plumbing a week low following bearish remarks by Fed Chair Jerome Powell, which bolstered the case for a June interest rate cut.

Now investors await important US data later today in addition to remarks by several Fed officials to gauge the path forward for monetary policies.

The Index

The dollar index fell 0.2% to 104.05, with a session-high at 104.26, after closing down 0.5% on Wednesday, the second loss in a row on profit-taking off five-month highs at 105.10.

The index lost ground following rather bearish remarks from multiple Fed officials.

Powell

Fed Chair Jerome Powell said in his speech at Stanford University that most participants in the Federal Open Market Committee see it appropriate to start cutting interest rates sometime this year.

Powell said that recent inflation and employment data didnt change the outlook for monetary policy.

He said that if the economy developed widely as expected, it would be appropriate to start cutting interest rates this year.

Bearish Fed Remarks

San Francisco Fed President Mary Dale, and Cleveland Fed President Loretta Mister, both said that the Fed will likely cut interest rates three times this year.

US Rates

Following their remarks, the odds of a June Fed interest rate cut rallied from 57% to 63%.

Fresh Pricing

Now investors await important US unemployment claims and monthly jobs data this week, which will help determine the likely path ahead for policies.