Yesterday, the US dollar fell from a 2-week high following comments by Federal Reserve Chairman Jerome Powell about interest rate hikes near neutral levels, and markets are now pricing in the Fed's approach to end the its rate hike cycle.
US President Donald Trump expressed his dissatisfaction with Fed's interest rate policy and criticized them more than once, saying these policies are hurting the US economy. The greenback is still moving above the uptrend line on the daily chart at 96.80.
The dollar saw a slight recovery today as investors are caution ahead of the summit of G20, which Trump is expected to meet with the Chinese president and the markets are watching a possible of a truce to trade war between the two largest economies in the world.
FOMC meeting minutes are due to release tonight, Fed kept interest rates unchanged at 2.25% in the last meeting, the markets will look for more evidences on how many times Fed will hike rates.
The dovish tone of Powell during his speech yesterday helped global equity markets to rise to a two-week high. Also, US bond yields fell to their lowest level since mid-September at 3.01%.
The vote on Brexit deal is still uncertain, as the Pound dropped to a daily low of 1.2754, after the Bank of England warned from leaving the EU disorderly. British Prime Minister Theresa May is currently seeking support for her deal with the European Union in the face of strong opposition.
Oil is broke the barrier of $ 50 for the first time in more than a year, with oil losses so far in November at around 23% on its way to record the biggest monthly decline since the global crisis in 2008. The continued rise in supply of US crude, coupled with Saudi Arabia's insistence not to reduce production alone, has pushed oil to its current levels.
