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Euro jumped to new record highs following the ECB President Draghi’s comments, while U.S. dollar weakness pushed EUR/USD even higher. Greenback is falling as Trump’s administration continues to disappoint. Loonie is rising ahead of retail and consumer price index was released.

Japanese yen slipped as the BoJ cut inflation forecasts. Meanwhile, the euro plunged versus all majors ahead of the ECB policy meeting while AUD/USD topped at 0.7988, a two-year high before the strong sell-off followed. Trump is trying to find a new healthcare plan and steps forward for tax reform.

Greenback extended its weakness as economic indicators and political developments pushed it even lower. Gold run sharply higher due to the U.S. dollar's weakness and British uncertainty, while British pound plunged widely from the U.K. CPI's first drop in 10-months.

Australian dollar surged to a two-year high versus the U.S. dollar, supported from the hawkish RBA minutes and U.S. dollar weakness. Trump needs two more votes to pass his healthcare bill which is difficult to get. Euro boosted from EZ CPI report while British pound dropped due to Brexit talks.

Bank of Japan and European Central Bank have their interest rate decisions this week, followed by speeches from the two central banks leaders. In addition, significant economic indicators will be released in the week ahead, like Eurozone’s and U.K.’s inflation rates.

The market is preparing for the holiday season and traders close their positions before leaving. Most of the currency pairs are moving mainly because of technical reasons as the limited economic news fail to influence them.

USD/CAD was the big event of the day as the weakness from Yellen’s testimony and Bank of Canada rate hike plummeted the pair to a 13-month low. Meanwhile, the U.K. employment data supported the British pound against the G10 currencies.

An extremely busy day today with the beginning of Fed Yellen’s two-day semi-annual testimony, the BoC policy meeting with speculations for tightening, and the British pound’s weakness due to a committee member's comments and concerns. Meanwhile, Brent Crude Oil shored up unexpectedly.

The week started very quiet with low volatility on Monday. USD traders are expecting Fed’s Beige Book and Fed Chair Yellen’s testimony later in the week. Euro and British pound have been traded in a range overall.

Last Friday, investors had confused reactions for the non-farm payroll report but finally, it ended positively for the dollar. The economy added 222K jobs in June, the highest number in four months, well above market forecast of 179K.

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