The U.S. dollar remained weak against majors on Wednesday trading as increasing expectations the Fed Chairman, Ben Bernanke, would announce a third round of stimulus in his speech at the an annual central bank conference in Jackson Hole later in the week sapped demand on the dollar.
In the case of launching QE3 to boost the fragile recovery, the dollar is expected to face downside pressure as its supply will exceed demand due to the money printing process.
The dollar index, which tracks the dollar movements versus a basket of major currencies, fell to low of 73.66 compared with the day's opening level of 73.82.
Later in the day, a U.S. report is predicted to show 2% in durable goods orders in July compared with the prior 2.0% drop reported in June.
On the other hand, the yen showed decline as the $100 billion package announced by Japan to help companies to cope with the appreciating yen proved fruitless.
Concerning the USD/JPY pair, it fell on the daily charts to trade around 76.50 after recording a high of 76.93 and a low of 76.48.
The trading range for today is among key support at 75.80 and key resistance now at 78.45.
Moreover, the euro pared some of its earlier drop against the dollar after the release of downbeat German business confidence report, yet it showed decline against the franc.
German business climate indicator slipped to 108.7 in August from 112.9 a month earlier.
Concerning the EUR/CHF pair, it fell slightly on the daily basis to trade around 1.1413, where it recorded a high of 1.1455 a low of 1.1312.
Moving to the British pound, it is currently trading near the day's starting level at 1.6495 after recording a high of 1.6532 and a low of 1.6471.
Amid the absence of fundamentals from the U.K. and before the release of U.S. data, the pair has followed the general sentiment in the market, where the pair is much affected by the dollar weakness.
The trading range for today is among key support at 1.6225 and key resistance at 1.6715.
All in all, eyes remain in the awaited speech from Bernanke as an introduction to a third round of non-standard measures may increase hopes that U.S. growth will show progress, thereby accelerating the sluggish global growth pace.