The dollar index is currently trading near two-week lows at 94.50 as concern over the trade conflict between the United States and its partners especially China escalates.
China's yuan hit its lowest level in six months as expectations grew that the Chinese authorities would allow the yuan to further fall to ease the impact of tariffs imposed by the United States starting next month.
The euro fell slightly from a two-week high of 1.1720 as it continued to face political instability as German Chancellor Angela Merkel faced pressure to deal with immigration.
Also, the pound retreated after comments by a member of the Bank of England about the uncertainty about the impact of Brexit on the economy, and currently GBPUSD traded at 1.3240 daily lows.
Concerns over the escalating trade dispute with the US and other major economies have also played a role in putting more pressure on the pound, and traders will wait for the outcome of the EU summit this week, which will be the subject of Brexit its top priority.
