The US dollar was trading sideways with a bias to the upside. The market volatility is low. It seems that traders took a pause ahead of the monetary policy meetings of two major central banks. The investor sentiment is upbeat as there is no negative news. Amid that, the appetite for risk increased while safe-haven assets came under pressure. At the same time, the euro lacks momentum as the ECB monetary policy meeting is coming closer. During the American trading session the EUR/USD pair declined. Yesterday’s optimism that was underpinned by the news from Germany faded away. On the other hand, the US dollar has managed to recover after a losing streak. The US Treasuries yield plunged to 3-week lows while the US dollar index was trading mixed near 98.38. The trading activity may increase if the pound sterling produces any sharp movements in either direction. Besides, traders are focusing their attention on the signals about readiness of the Federal Reserve to cut the interest rate. Any updates on this matter can cause a change in the US dollar trend. The commodity currencies are still supported by the rising oil prices. The US dollar weakened against its Canadian counterpart. The USD/CAD pair fell to 1.3163 during the American trading session. Today, Canada released some upbeat macroeconomic statistics. In particular, the building permits rose by
3% in July. The commercial construction sector saw the biggest increase. Overall, the situation is mixed. On the one hand, the pound sterling faces downward risks as the spread between the American and British bonds yield declined. On the other hand, a further rise in oil prices provides support to the pound due to the correlation between GBP/USD and Brent.