On Wednesday, the US dollar continues to hold on to its recent gains and is trading close to a one month high after its safe haven appeal strengthened as the risk sentiment soured in markets. At the time of writing, the US dollar index DXY is trading around 93.49.

Equity markets slid lower during the previous session, sending investors towards the safety of the greenback and away from riskier instruments like stocks. In addition, falling crude oil prices weakened commodity currencies and further boosted the appeal of the US dollar.

The dollar is also trading stronger in anticipation of the upcoming ECB policy meeting due later in the day, with traders keeping an eye out for possible steps by the central bank to counter the recent strengthening of EUR/USD. The Euro had risen above the 1.20 level against the dollar in recent sessions, but could slide lower if the ECB sounds more dovish than expected.

The GBP is also exhibiting weakness against the dollar over growing fears of a possible no-deal Brexit once again. Meanwhile, the Canadian dollar fell to the lowest level in three weeks against the USD after WTI crude oil lost almost 8% of its value during the previous session.