The US dollar tumbled in European trade on Wednesday against a basket of major rivals, heading for the third daily loss in a row and plumbing two-week trough amid huge selling pressures due to concerns about the US financial stability.

Now investors await remarks by several Fed officials today to gather clues on the future of US interest rates.

The Index

The dollar index fell 0.6% today to 99.40 with a session-high at 99.99.

On Tuesday, the index lost 0.4%, the second loss in a row on US financial stability concerns.

Fiscal Developments

US President Donald Trump has failed to convince Republicans to pass his tax cuts proposal, while investors are growing cautious from potential attempts by US officials to weaken the dollar during a ministerial meeting for the G7 in Canada.

US Rates

US President Donald Trump once again called on the Federal Reserve to cut interest rates in posts on his social media accounts.

Atlanta Fed President Raphael Bostic said earlier this week that hes leaning towards a single interest rate cut this year.

According to the Fedwatch tool, the odds of a Fed 0.25% interest rate cut in June stood at just 8%.

The odds of a 0.25%% Fed rate cut in July stood at 37%.

Traders now expect 50 basis points overall of Fed rate cuts this year, likely starting in October.

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