The dollar fell from a two-week high

The U.S. dollar declined from a two-week high on May 6. Remarkably, traders are focused on economic data that may provide clues on when the Federal Reserve will dial back monetary stimulus and a Bank of England meeting.

The greenback has recovered from a one-month low over the past week, driven by U.S. economic data.

Remarkably, global currency markets were calm as European markets opened. The risk-sensitive Australian dollar declined sharply overnight when China announced it would stop its economic dialogue with Australia. Still, Aussie had rebounded to trade close to flat on the day as European markets opened.

The Australian dollar increased by 0.1% against the U.S. dollar and traded at  0.77530, reaching as low as 0.7701 overnight.

The New Zealand dollar also declined but witnessed a similar recovery.

The U.S. dollar index declined by 0.1% on the day at 91.152. It reached 90.422 level one week ago and has since boosted, helped by end-of-month flows and comments by U.S. Treasury Secretary Janet Yellen’s. Yellen announced that interest rates may need to increase to stop the American economy from overheating.

The UK’s economy is heading for a much stronger recovery that anticipated

The British pound fell by 2% against the dollar at $1.3909. Meanwhile, the sterling against the euro traded at 86.425 pence per euro ahead of the Bank of England meeting.

The BoE will announce that UK’s economy is heading for a much stronger recovery in 2021 than it previously anticipated. Moreover, it might start to slow its pandemic emergency support.

The euro boosted by 0.2% versus the dollar at $1.20230.

Strong domestic demand for consumer goods drove a bigger than anticipated rise in German industrial orders in March. It indicates that manufacturers in Europe’s largest economy will support a recovery in the second quarter.

The Canadian dollar traded close to near three-year highs. Meanwhile, the Norwegian crown boosted by 0.2% versus the euro, with the pair changing hands at 10.0125. The Norges Bank’s rate announcement is not anticipated to see rates change.

In crypto markets, the most popular cryptocurrency, Bitcoin, fell by 1.1% and traded at $56,818. The currency is still below a lifetime high of $64,895.22 it hit in the previous month. Ether, the second-largest cryptocurrency, traded about $3,440. Ethereum hit an all-time high of $3,559.97 on Tuesday, skyrocketing about 800% in May.

The meme-inspired currency Dogecoin rose on Wednesday to a record high and became the fourth-biggest digital coin.