The US dollar has extended its losses after Fed Chair Jerome Powell opened the door to cutting rates. He said that the outlook has dimmed as trade and global uncertainties weigh, weak inflation may become persistent, and even the labour market cannot be labelled as "hot." Powell testifies again today.

The FOMC meeting minutes echoed Powell's words, saying that the many considered reducing rates, as a result the publication added to the greenback's slide.

We have a data-light EUR calendar for today, with only the European Central Bank’s June meeting’s minutes due at 11:30 GMT for fresh hints on a potential rate cut this month or the recent chatter on the restart of the QE program. Also, of note remains the Bank of England Governor Carney’s speech at 10:00 GMT at a press conference following the release of the central bank's Financial Stability Report (FSR) expected to be published at 09:30 GMT.

The NA session is heavy with the Fedspeak, with the day 2 of Fed Chair Powell’s testimony closely eyed at 14:00 GMT. Later in the session, the Fed officials Williams, Bostic, Barkin and Kashkari will be speaking and could have a significant impact on the dollar trades, as the US Consumer Price Index (CPI), due at 12:30 GMT, is likely to come in mixed. At the same time, the US jobless claims will be reported.

Markets will continue to keep a close watch on the US-China trade negotiation and UK political development.

Oil prices are on the rise. A storm is brewing in the Gulf of Mexico and Iranian ships allegedly delayed a British oil tanker.

Gold surges to 8-day high on aftershocks of Powell’s Testimony and over pessimism surrounding the US-China trade deal and the US-Iran political tussle. The Fed Chair’s dovish Testimony, supported by the FOMC Minutes, pushed the US Dollar in the lows, which in turn pushed buyers towards Gold that generally has a negative correlation with the greenback.