The US dollar hit its lowest level in three years at the beginning of the trading day, following statements by the US Treasury Secretary yesterday that the weakness of the dollar is good for the United States and that he does not worry about the dollar in the short term. The dollar index fell to 88.60 levels, its lowest since December 14, 2014.
Eyes will be looking ahead to today's ECB meeting, as the markets are waiting to see whether there will be comments on the strong euro, which has gained 3% since the beginning of the new year amid heavy selling of the US dollar, which is usually exhibits weakness during the first quarter of each year.
EURUSD is currently stabilizing at the 1.24 levels at a three-year high and comments coming from ECB President Mario Draghi, as well as new decisions on monetary policy, will have an impact on the movements of the single currency in the coming period.
The dollar also hit its lowest level in several years against a number of other major currencies, as the Swiss franc reached its highest level against the dollar since August 2015, and the Chinese yuan hit its highest level since November 2015.
Sterling continued its strong gains to reach 1.4327 - the highest since the EU vote in June 2016. The dollar continued its slide against the yen, reaching its lowest level since September last year at 108.72.
