U.S. Dollar Showing Weakness Against Majors

The U.S. dollar dropped against its major counterparts in the European session on Wednesday, amid receding geopolitical tensions following comments from U.S. President Joe Biden that missile strike in Poland is unlikely to have been launched from Russia.

Biden said that missile that hit the town of Przewodow in Poland may not have come from Russia.

The explosion killed two Polish civilians and Washington and its allies said they will conduct an investigation about the matter.

Poland's President Andrzej Duda said that although the missile was "most likely Russian-made," there was no concrete proof as to who fired it.

Russia's Defense Ministry denied involvement in the missile strikes and called them a "deliberate provocation."

The greenback dropped to 0.9393 against the franc and 1.1941 against the pound, following its prior highs of 0.9470 and 1.1831, respectively. The greenback is seen finding support around 0.92 against the franc and 1.22 against the pound.

The greenback pulled back against the yen, with the pair trading at 139.37. The currency may face support around the 121.00 region.

Reversing from its early highs of 1.0331 against the euro and 1.3306 against the loonie, the greenback fell to 1.0438 and 1.3228, respectively. The next possible support for the currency is seen around 1.09 against the euro and 1.30 against the loonie.

The greenback slipped to 0.6793 against the aussie and 0.6194 against the kiwi, down from its previous highs of 0.6730 and 0.6130, respectively. The greenback is poised to challenge support around 0.70 against the aussie and 0.63 against the kiwi.

Looking ahead, Canada housing starts data for October is set for release at 8:15 am ET.

Canada CPI for October, U.S. business inventories data for September and NAHB housing market index for November, as well as retail sales, industrial production and import and export prices, all for October, will be released in the New York session.