On Thursday, the US dollar has fallen close to a one-week low as traders cautiously await comments from the Fed chair later today on the monetary policy and the central bank’s take on inflation in the US. At the time of writing, the US dollar index DXY is trading around 92.87.

Fed chairman Jerome Powell is widely expected to shed light on the new policy framework to combat low levels of inflation. A less dovish than expected approach by the central bank can cause a rally in the US dollar following Powell’s speech at the virtual Jackson Hole symposium.

Meanwhile, the Euro has strengthened close to a weekly high against the dollar. However, EUR/USD is expected to continue trading range-bound until Powell’s speech at the event later in the day.

Other currencies like the GBP and the AUD are also trading strong and steady against the US dollar this week, gaining 0.9% and 1.1% respectively so far this week. The Chinese yuan has also gained against the greenback this week over positive statements by the US and China on working towards meeting the terms of the phase one trade deal.