U.S. Dollar Advances Ahead Of Trump's Press Conference

The U.S. dollar drifted higher against its major counterparts in the early European session on Wednesday ahead of the U.S. President-elect Donald Trump's press conference later in the day, with investors awaiting more specifics about his stimulus measures, mainly relating to tax cuts and infrastructure spending.

With Trump addressing the media for the first time since his shocking victory on November 8 elections, market participants are betting that he is likely to give details on his economic policies.

According to incoming White House Press Secretary Sean Spicer, Trump will address how he is handling the transfer of his business to focus on the office.

Trump's proposed tax cuts and spending plans could boost U.S. and global growth, while uncertainty about his trade policies adds to the risks, the World Bank said in its latest outlook on the global economy.

Growth in the United States was expected to pick up to 2.2 percent, as manufacturing and investment growth gain traction after a weak 2016. The outlook for this year was left unchanged.

Meanwhile, European stocks recovered from early losses, as base metal prices remained strong, the euro weakened against the dollar and British grocer Sainsbury reported record Christmas sales, defying concerns of a slowdown in consumer spending.

Oil prices also edged up after steep overnight losses in the wake of reports that Saudi Arabia has started to comply with slight supply cuts from contracted volumes in February, including to India and Malaysia.

The greenback has been trading modestly higher against its major rivals in the Asian session.

The greenback climbed to 1.2110 against the pound, off its early 2-day low of 1.2198. On the upside, 1.19 is possibly seen as the next resistance level for the greenback.

Data from the Office for National Statistics showed that the U.K. visible trade deficit widened more-than-expected in November.

The trade in goods showed a deficit of GBP 12.2 billion versus a shortfall of GBP 9.9 billion in October. Economists had expected the deficit to rise to GBP 11.5 billion.

The greenback, having fallen to 115.67 against the yen at 7:00 pm ET, reversed direction and climbed to a 2-day high of 116.46. The greenback is seen finding resistance around the 118.00 mark.

The greenback strengthened to 2-day highs of 1.0530 against the euro and 1.0196 versus the Swiss franc, from Tuesday's closing values of 1.0554 and 1.0168, respectively. If the greenback extends rise, it may find resistance around 1.03 against the franc and 1.04 against the euro.

The greenback bounced off to 0.6990 against the kiwi and 0.7372 against the aussie, from its early low of 0.7022 and a multi-week low of 0.7396, respectively. The next possible resistance levels for the greenback may be seen around 0.67 against the kiwi and 0.70 against the aussie.

Looking ahead, the Bank of England governor Mark Carney will testify before the Parliament's Treasury Select Committee in London at 9:15 am ET.

The Energy Information Administration releases official crude inventory data in the New York session.

New York Fed President William Dudley speaks about banking culture from a regulatory perspective at the Banking Symposium in New York at 1:20 pm ET.