The USD fell yesterday as the fears surrounding trade have eased off for the time being.

President Trump came out on Sunday and said that he would be delaying increases in tariffs on Chinese exports into the US as there had been substantial progress being made on the deal.

The talks have been looking at not only trade but intellectual property and technology.

The economic calendar is still a little thin at the moment, but the one key event of note today for the USD will likely be Federal Reserve Chairman Jerome Powell’s semiannual monetary policy report to the Senate Banking Committee.

Given the dovish slant we’ve heard from him in recent times, there will be much interest as to whether that talk continues today.

The USD Outlook

The DXY remains just below the key resistance level at 97.00 which has been holding price down for some time.

Price has now drifted back below 96.50 as we see what happens today with the Fed boss.

There is every chance of a retest of 96.00, with key support really at 95.00-95.50.