Forex Today: Risk appetite weighs on the greenback

What you need to know on Wednesday, June 23:

Optimism returned to financial markets and weighed on the dollar. However, USD losses were limited and continue to look corrective after last week’s rally. US Federal Reserve chief Jerome Powell testified before Congress on the Fed’s response to the pandemic.

Earlier in the day,  Cleveland Federal Reserve President Loretta Mester said she is not yet thinking about adjusting monetary policy and added that she'd like to see further progress on employment. Additionally, she said that "the Fed should be methodical in approach to tapering and communicate with the public to avoid surprises."

High-yielding currencies posted modest intraday advances. EUR/USD is currently trading at 1.1950, GBP/USD stands at 1.3960, while AUD/USD hovers around 0.7560. The USD/CAD pair approached the 1.2300 level, while USD/JPY nears 2021 high at 110.96.

UK Health Minister Matt Hancock said covid-related data looks encouraging and suggests lockdown can fully end on July 19 as planned because a recent rise in cases is not resulting in deaths.

Concerns arose globally after the report of a new covid variant called Delta Plus, which may trigger new waves.

Little action around commodities. Gold keeps hovering around $ 1,780 a troy ounce, while crude oil prices retained gains. WTI settled at $73.00 a barrel.

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