The dollar was firmer on Wednesday leading in to Federal Reserve Chair Jerome Powell’s appearance at Congress where he is expected to strike a hawkish tone, while sterling lingered below recent peaks ahead of key inflation data.
British inflation data is due at 0600 GMT, Bank of Japan Governor Kazuo Ueda is due to speak at 0630 GMT and Powell is due to begin his testimony before Congress at 1400 GMT.
Sterling fell overnight but recovered about half its losses to trade steady at $1.2763 through the Asia session, not far below last week’s 14-month high of $1.2849.
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