The Greenback fell yesterday against its major rivals on the back of a combination of broad US dollar weakness and soaring US equities. US equities hit an all-time high for the first time since January 26 which was led by technology and utility companies, the benchmark S&P 500 index traded up 0.6% to 2,872.93. US equities, equaling the longest-ever bull run, has been supported this year by strong earnings growth.
FOMC minutes of the Fed's last policy meeting are released today at 2 pm. With two rate hikes already put in place this year by the Fed and the recent criticism from President Trump on Fed Chair Jerome Powell’s tightening policy, market participants are keen on receiving clues to the tightening path the Fed will take. Chair Powell speaks at the Jackson Hole Symposium on Friday; the symposium is a gathering on global central bankers. This year theme at the symposium is the economic impact of superstar firms like Amazon.
From a technical perspective, the EUR/USD pair extended its Trump-triggered rally to a high of 1.1600, its highest in over a week. The USD/JPY pair also traded higher reaching an overnight high of 110.54. Despite concern fears of a no-Brexit deal, the Pound Sterling rallied to a high of 1.2924 against the US dollar.