The US Dollar Index (DXY), which tracks the performance of the US Dollar (USD) against six major currencies, has fallen to 107.50 so far on Thursday.

The knee-jerk reaction comes after stronger-than-expected US Consumer Price Index (CPI) data for January was released on Wednesday,  which pushed the US Dollar higher.

However,  the turnaround came in the US trading session when United States (US) President Donald Trump and Russian President Vladimir Putin agreed over the phone to start peace talks with Ukraine.

The economic calendar is focusing on US producer figures on Thursday. The January Producer Price Index (PPI) is due. The weekly US Jobless Claims will be released as well.

Traders meanwhile can further digest the two-day testimony from US Federal Reserve (Fed) Chairman Jerome Powell at Capitol Hill.

Source: FXStreet