USD hits fresh 6-month lows yesterday, with the US dollar index (DXY) hitting lows of 97.33 throughout Wednesday’s session. So far this week the DXY has lost 1.68%.

The USD took a hit yesterday against the Yen, were throughout Wednesday’s session alone the USDJPY shed off 2.02% as it moved lower and the JPY got the upperhand – the currency pair is currently trading at 110.97 just above the 200-DMA at 109.55.

Similarily even the euro managed gains against the weaker USD, EURUSD is currently at 7-month highs as the currency pair pursues 1.1161 levels.TraderTip’s daily scenario envisages a retest of 1.1052/1.1105 unless price action manages to take on 1.1160:1.1186 area.

USD weakness is being trigerred by the political situation in the US, Trump has been allegedly interfering with the former FBI’s investigations into the role of Russia in the last US election. This obviosuly delays the policies expected out of the Trump government but also creates political instability.

Gold attained $1263 this morning and is currently at $1260.31, due to the weaker USD.

This morning we have UK retail sales, US Philly Fed and later this evening ECB President Draghi speaks in Tel Aviv.