(fxcue news) - The U.S. dollar spiked up against its major counterparts in the New York session on Wednesday, as consumer prices increased in line with estimates in August, reducing the possibility of a 50 basis point rate cut by the Federal Reserve at the monetary policy meeting next week. Data from the Labor Department showed that consumer price index rose by 0.2 percent in August, matching the uptick seen in July as well as economist estimates. Meanwhile, the report said the annual rate of consumer price growth slowed to 2.5 percent in August from 2.9 percent in July. Economists had expected the year-over-year growth to decelerate to 2.6 percent. Core consumer prices, which exclude food and energy prices, climbed by 0.3 percent in August after rising by 0.2 in July. Economists had expected core prices to rise by another 0.2 percent. The annual rate of core consumer price growth was unchanged from the previous month at 3.2 percent in August, in line with economist estimates. The Federal Reserve is still likely to lower interest rates next week, but bigger than expected increase in core consumer prices reduced the chances of a 50 basis point cut at the meeting. Following the report, CME Group's FedWatch Tool is indicating an 85.0 percent chance of a quarter point rate cut and just a 15.0 percent chance of a half-point rate cut. The greenback climbed to near a 4-week high of 1.1001 against the euro, from a 2-day low of 1.1054 hit at 7:25 am ET. At yesterday's close, the pair was quoted at 1.1019. If the greenback rises further, it is likely to test resistance around the 1.06 region. The greenback advanced to a 3-week high of 1.3010 against the pound, from a 2-day low of 1.3111 seen at 1:20 am ET. The pair was worth 1.3079 at yesterday's close. The currency is likely to locate resistance around the 1.27 level. The greenback strengthened an 8-day high of 0.8531 against the franc, up from a 5-day low of 0.8422 seen at 1:20 am ET. The pair was valued at 0.8469 at yesterday's close. Should the greenback continues its uptrend, 0.92 is possibly seen as its next resistance level. The greenback rose to 142.54 against the yen, from an 8-1/2-month low of 140.70 it touched at 1:20 am ET. The pair had finished yesterday's trading session at 142.41. Immediate resistance for the currency is seen around the 147.00 level. The greenback moved up to near a 4-week high of 0.6622 against the aussie, fresh 3-week high of 0.6109 against the kiwi and near a 3-week high of 1.3619 against the loonie, from yesterday's close of 0.6652, 0.6149 and 1.3610, respectively. The currency is seen finding resistance around 0.63 against the aussie, 0.60 against the kiwi and 1.38 against the loonie.