The USDJPY pair fell below the important 110 threshold, while the cable was trying to catch some bullish momentum to jump above 1.39.
Data released this week showed that the US CPI rose 5.4% in June, and producer prices jumped 7.3%, both numbers at multi-decade highs.
Yesterday. Powell once again talked down the spike in U.S. inflation as only temporary, saying in testimony before Congress on Wednesday that it would be a mistake to act prematurely and that economic conditions for tapering bond-buying were "still a ways off."
The 10-year US yield dropped sharply and is now trading below the important long-term uptrend line, suggesting a further decline in yields is to come. That is good news for precious metals, with gold jumping above 1,830 USD and silver finally detaching from the 26 USD level to the upside.
What is bad for the USD is usually good for US stocks, and the Nasdaq 100 index is seen near its all-time highs at 15,000 USD, while the SP500 index is in a similar situation, trying to push above 4,400 USD.
Later today, US jobless claims are due, along with industrial production and capacity utilization.
Moreover, the second day of Powell's testimony will continue, possibly causing some volatility in the markets again.