The U.S. dollar slipped against its major counterparts in the European session on Wednesday, as the nation’s core inflation grew less than forecast in February, tempering concerns over higher borrowing costs that could derail an economic recovery.

Data from the Labor Department showed that U.S. core consumer price index missed expectations in the month of February.

Excluding food and energy prices, core consumer prices inched up by 0.1 percent in February after coming in unchanged for two straight months. Economists had expected core prices to rise by 0.2 percent.

The consumer price index climbed 0.4 percent in February after rising by 0.3 percent in January. The increase in prices matched expectations.

The U.S. House of Representatives are preparing to vote on Biden’s COVID-19 relief package.

The package provides $1,400 in direct payments to most Americans and $300 a week in jobless benefits through September 6.

The greenback rose in the Asian session, following a recovery in the U.S. bond yields.

The greenback lost 0.2 percent to hit a 2-day low of 1.1925 against the euro. The pair was worth 1.1900 when it closed deals on Tuesday. Next immediate support for the greenback is seen around the 1.22 level.

The greenback was 0.1 percent lower against the yen, at a 2-day low of 108.34. The pair had closed Tuesday’s deals at 108.48. The greenback is seen finding support around the 105.00 level.

The greenback touched a 6-day low of 1.3934 against the pound, falling 0.6 percent from a high of 1.3845 it set at 1:15 am ET. The pound-greenback pair had ended yesterday’s trading session at 1.3887. Should the greenback dips further, 1.41 is possibly seen as its next support level.

The greenback fell back to 0.9281 against the franc, on track to pierce its Asian session’s 5-day low of 0.9272. At yesterday’s trading close, the pair was quoted at 0.9276. Further fall in the currency may challenge support around the 0.91 level.

After rising to 0.7669 against the aussie at 1:15 am ET, the greenback turned lower, reaching a 6-day low of 0.7746. The greenback was worth 0.7713 per aussie at Tuesday’s New York session close. Immediate support for the greenback is likely located around the 0.79 level.

Data from the Australian Bureau of Statistics showed that Australia building permits dropped a seasonally adjusted 19.4 percent on month in January – standing at 15,926.

That was in line with expectations following the 12.0 percent gain in December.

The greenback was down versus the kiwi, at a 6-day low of 0.7199. This followed a high of 0.7131 recorded at 1:15 am ET. At Tuesday’s close, the pair was valued at 0.7169. Further downtrend may take the greenback to a support around the 0.74 level.

Data from Statistics New Zealand showed that New Zealand electronic retail card spending dropped a seasonally adjusted 2.5 percent on month in February – following the 0.3 percent decline in January.

Spending in the core retail industries was down 2.5 percent on month.

The greenback depreciated to 1.2613 against the loonie from yesterday’s close of 1.2632. Extension of downward trading may see the greenback finding support around the 1.24 region.

The material has been provided by InstaForex Company – www.instaforex.com

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