Investing.com – The U.S. dollar fell on Thursday, consolidating after rebounding sharply overnight ahead of key Federal Reserve policymakers’ next speeches.

At 04:40 ET (08:40 GMT), the dollar index, which tracks the greenback against a basket of six other currencies, fell 0.1% to 100.565, following Wednesday’s gain of almost 0.6%, the biggest one-day gain since June 7.

Dollar looks to Fed officials

The U.S. dollar steadied on Thursday after rebounding strongly overnight as investors reassessed how aggressive future U.S. interest rate cuts would be following the Federal Reserve’s start of a rate-cutting cycle with a massive 50-basis-point cut earlier this month.

Several Fed officials will speak on Thursday, and investors will be looking for further guidance as the message from the last Fed meeting was somewhat inconsistent.

The Fed governor said she “strongly supports” the decision to cut interest rates by half a point to start an easing cycle, but the Fed governor warned against edged rate cuts and the Atlanta Fed president said the central bank does not need to get into “mad rush” to lower rates.

“For Fedspeak, Chairman Powell will deliver pre-recorded opening remarks, and the list of other speakers is long: Collins, Bowman, Williams, Barr, Cook and Kashkari. The Dot Plot submitted by each member should be additionally colored,” ING analysts said in a note.

There is also a full list of economic data on Thursday, including: the latest print for the second quarter, the weekly publication and orders for August.

The euro remains at an elevated level

In Europe, the rate rose slightly to 1.1132, after falling sharply from 1.1214, a high not seen since July last year, when the euro zone data calendar was serene.

“We are likely to see a bit more swings around the 1.110-1.120 range in the near term unless US data gives markets a clearer direction. A two-year EUR:USD swap rate gap of less than -100 bp (currently -95 bp) continues to argue against a significant correction for the pair,” ING said.

the rate rose 0.1% to 1.3342, after rising to 1.3430 on Wednesday for the first time since February 2022.

fell 0.2% to 0.8488 after cutting the benchmark interest rate by 25 basis points earlier on Thursday.

While the move was largely expected and represents the third such cut in a row, some had expected an even bigger cut as the country’s inflation rate was 1.1% last month, the slowest pace among G10 economies and almost halfway through target. SNB range of 0-2%.

Yuan benefits from Chinese stimulus

was trading 0.2% lower at 7.0187, close to the lowest level since May 2023, after Beijing unveiled a series of major stimulus measures aimed at supporting growth.

rose 0.1% to 144.87, moving away from 2024 lows ahead of Friday’s LDP elections to choose the country’s next prime minister.

Analysts expect that the change of leadership in Japan will thwart the Bank of Japan’s plans to enhance interest rates in the near term.