Forex Today: US Dollar Holds Steady Ahead of Powell Testimony, Housing Data

Forex Today: US Dollar Holds Steady Ahead of Powell Testimony, Housing Data

Financial markets are showing muted price action early Wednesday, June 25, following a day of volatile trading on Tuesday. The US Dollar (USD) is holding relatively stable as investors gear up for two key events: May's New Home Sales data and Federal Reserve Chair Jerome Powell's second day of testimony.

Powell Set to Speak Again Before Senate

Fed Chair Jerome Powell will testify before the Senate Banking Committee later today. His comments on interest rate strategy, inflation, and broader economic performance will be closely analyzed for hints on future monetary policy direction.

On Tuesday, Powell maintained a cautious tone, reiterating the need for more data before the Fed commits to a rate cut. Markets have been pricing in possible action later in 2025, depending on inflation developments.

US Housing Data Could Move Markets

The New Home Sales report for May will also be released later in the US session. Housing sector performance remains a closely watched barometer of consumer strength and overall economic resilience.

Key Highlights:

• USD stable amid limited early-day volatility
• New Home Sales (May) due later today
• Powell’s testimony continues, could influence policy expectations

Outlook for USD Traders

Markets are currently in wait-and-see mode, with the US Dollar supported by mixed macro data and ongoing geopolitical developments. While tensions in the Middle East have eased, uncertainty around US trade policy and inflation continues to cloud the broader picture.

Internal Links for Tredu.com Readers:

• Powell Testimony Recap: Key Takeaways from Day One
• USD Index Forecast: Is a Bounce Possible After DXY Hits 97.90?
• US Housing Market Update: What to Expect from May Sales