• The US Dollar extends losses, depreciating near 1% in one week.
• US Federal Reserve Chairman Jerome Powell triggered the sell-off by confirming that rate cuts will come this year. 
• The US Dollar Index snapped substantial support, increasing the selling pressure. 

The US Dollar (USD) extends losses on Thursday for a fifth consecutive trading session after downbeat macroeconomic data and increasing expectations of interest-rate cuts by the Federal Reserve (Fed) later this year. On Wednesday, US Fed Chairman Jerome Powell said in his semi-annual testimony before Congress that cuts will be coming this year. Markets sold the Greenback in the idea that the interest rate differential against other currencies will start to close or might even flip as other central banks are expected to take longer to lower rates compared with the Fed. . 

On the economic calendar front, some light data is ahead for Thursday, which will probably be overshadowed by the European Central Bank (ECB) meeting and a speech by ECB President Christine Lagarde. The tone and wording of the speech will be vital as the Euro could advance further against the Greenback should the ECB say that it will maintain current rate levels, in contrast with Fed’s Powell confirmation that cuts are coming. The weekly US Jobless Claims data could have a bit of impact, though not much market movements are expected on the back of it. Meanwhile, Fed’s Powell will head to the US Senate for a second day of testimony.