US dollar fell on the European market on Wednesday against a basket of global currencies, continuing losses for the second day in a row, near its lowest level in two months, with the continuation of the greenback sell-off activity in light of the increasing likelihood for the Federal Reserve to cut interest rates this year, while In order to re-evaluate those possibilities, investors will be looking at key data in the US later in today.

The dollar index fell more than 0.1% to 96.53 points, from the opening level of 96.66 points, with the highest level at 96.72 points.

Yesterday, the index lost 0.1%, the third loss in the past four days, resuming losses that were temporarily halted the previous day within recovery from a two-month low of 96.39 points.

According to the FedWatch tool of the CME, the market is pricing the possibility of a US interest rate cut of around 78% in July and about 97.1% for cuts by December.

The prospects have recently increased widely as the weak economic data from the United States, which indicates that the country's economic growth has slowed in the second quarter of this year, as well as the administration of US President Donald Trump requesting lower interest rates.

Donald Trump on Tuesday criticized the rise in US interest rates and the policy of the Federal Reserve, saying “The Fed Interest rate way too high, added to ridiculous quantitative tightening! They don’t have a clue!”

in order to reassess those possibilities, investors are anticipating major US inflation data later in the day, which in case of a negative data release will reinforce those odds and widen the losses of the US dollar against a basket of currencies.

By 12:30 GMT, the US CPI is expected to rise by 1.9% in May from 2.0% in April, and the monthly reading is expected to show a rise by 0.1% while in the previous reading it rose by 0.3%.

European shares fell on Wednesday morning for the first time in four sessions, on correction and profit-taking from the highest level in five weeks, as well as the renewed fears about the possibility of an esclation of the trade war between the United States and China.

Stoxx Europe 600 fell by more than 0.4% at 10:59 GMT, while the index ended yesterday's session up by 0.3%, its third consecutive daily gain, hitting its highest level in five weeks, led by the strong rally of the German market and the support of incentive measures In China.

The Index fell on Wednesday morning for the first time in four sessions on correction and profit taking from the highest level in five weeks, with most of the major bourses and sectors in the negative region.

The energy sector led the list of losing sectors in Europe with a drop of more than 1.5% due to the fall in oil prices for the third day in a row in the global market, while also the sectors linked to the global trade declined.

US President Donald Trump defended tariffs on Tuesday as part of his trade strategy, and China vowed to respond harshly if Washington insisted on escalating trade tensions.

S&P 500 futures fell more than 0.3%, and the index ended yesterday's session on Wall Street stable with little change, after strong gains continued for six consecutive sessions.

Euro Stoxx 50 fell by 0.4%, while in France, the CAC 40 index fell 0.55%, with Germany's DAX losing 0.45%, and London's FTSE 100 fell 0.6%.

Gold prices rose on European markets on Wednesday to resume gains that were halted for two days on correction and profit taking from a 14-month high, on the back of the US dollar's decline ahead of major US inflation data, especially as investors' demand on the metal as a safe haven rose amid fears of the US-China trade war.

As of 10:27 GMT, gold prices rose by 0.7% to trade at $1,335.55 per ounce from the opening level of $1,326.57, and recorded a high of $1,338.37and a low of $1,326.02.

Yesterday, gold prices lost 0.1%, the second consecutive daily loss, with corrections and profit taking from a 14-month high of $1,348.26 per ounce.

The dollar index fell more than 0.1% on Wednesday, continuing its losses for the second day in a row, approaching the lowest level in two months, reflecting the continued decline of the dollar against a basket of major and secondary currencies.

The drop in dollar levels comes as the Federal Reserve is likely to cut interest rates this year, as US President Donald Trump's administration continues to pressure monetary policy makers to cut interest rates to support the administration in its trade wars against several countries.

These prospects also increased after the weak economic data from the United States, which increased the signs of global economic slowdown in the second quarter of this year.

According to the FedWatch tool of the CME, the market is pricing the possibility of a US interest rate cut of around 78% in July and about 97.1% for price cuts by December.

In order to reassess those possibilities, investors are anticipating major US inflation data later in the day, which in case of a negative data release will reinforce those odds and vice versa.

Investment demand has rekindled the precious metal as a safe haven, amid fears of a worsening trade war between the United States and China.

US President Donald Trump on Tuesday defended the use of tariffs under his trade strategy from one side, and China has vowed a tough response if US tariffs on Chinese goods are raised again amid ongoing negotiations between the two countries for a comprehensive trade deal.

Gold holdings with SPDR Gold (Trust The largest global gold-backed index fund) fell yesterday by 0.24 metric tons to bring the total down to 756.18 metric tons, the lowest level this month.

Bitcoin surged in spot trading today to resume its gains that were temporarily halted yesterday, in a fresh attempt to trade above the psychological barrier of $8,000, but still need more positive news to resume the bullish market run.

As of 08:27 GMT, at Bitstamp, Bitcoin is trading around $7,955, up by $40, or 0.5%, from the opening price of $7,915, with the highest at $8,089, and the lowest at $7,821.

Yesterday, Bitcoin lost 1.3% due to corrections and profit taking, following a rise by 5.1%, the highest daily gain since May 26.

The total market value of cryptocurrencies rose on Wednesday by about $4 billion to a total of $258 billion, with the recovery of most of the major currency prices in the crypto market.

At the moment, Bitcoin is waiting for more positive momentum to resume the bullish market run, to trade above the psychological barrier of $8,000, but these attempts still need more positive news, which helps to accelerate the levels of investment demand to resume the bullish market run.

The bullish market run has dominated the largest cryptocurrency in the world since early April, to record a year high of $9,096 per unit.

Some crypto market experts believe that a possible Facebook announcement over the next few days about its digital currency project will have a significant impact on prices, whilst if the project is a disappointment we may see an appropriate price correction that could be used as an opportunity to buy.

 If the details of the project are positive above market expectations, we will see a rise in most of the key cryptos prices, but it is unlikely to repeat the sharp rise as in late 2017.

 Meanwhile, in a joint statement, G20 finance ministers and central bank governors said "technological innovations, including basic crypto assets, can provide great benefits to the financial system and the global economy."

At the same time, "they warned regulatory authorities against the need to control the risks in crypto assets, especially those related to investor protection, anti-money laundering and terrorist financing.