The USD was mixed against majors. The U.S. dollar appreciated against the JPY and the CHF but traded lower versus commodity currencies and the EUR and the GBP after a surprise Organization of the OPEC supply cut agreement and signs of a settlement between the U.S. Department of Justice and Deutsche Bank.
Sterling slumped to a three-year low against the euro on Monday as Britain set a March deadline to start divorce proceedings from the European Union, while worries over Deutsche Bank and Europe's banking sector kept share prices in check.
The dollar rose against the yen and a basket of currencies on Wednesday, with the focus shifting to Federal Reserve chair Janet Yellen's semi-annual testimony before a Congressional committee later in the day.
Risk is on the menu at the start of this new week with stocks, crude oil and commodity currencies all climbing higher, while the dollar is easing back slightly after Friday’s rally. The weaker dollar has also boosted the GBP/USD, which has bounced off the 1.30 handle, and to a lesser degree the EUR/USD.
he Euro/Aussie currency pair is in the process of creating a bearish engulfing candle on its daily chart, which is obviously a bearish pattern as it shows a clear shift from previously buying to now selling pressure.
The retails sales figures for the British pound and Bank of England rate decision may cause some action today on the EUR/GBP currency pair. The Aussie remains bearish for now, dropping into wave five of 5 that may hit 0.7400 today.