The market started trading this week with better sentiment after seeing major currencies rise higher against the US dollar.
Investors are still hoping a $ 1.9 trillion stimulus package by President Joe Biden will be approved by Congress in the near future.
However, there were new concerns after Republican Senators expressed their dissatisfaction with the aid package which was deemed too large and did not see the need to approve it.
This could lead to constraints for the Joe Biden administration to approve its implementation sooner to support the people and the economy affected by the Covid-19 pandemic.
This may be one of the factors supporting the US dollar to rise again at the beginning of the European session.
Tensions are rising ahead of the Federal Reserve's decision on Thursday. The central bank is expected to keep interest rates unchanged and push for a reduction in its bond purchase scheme.
The pound once again showed a decline as the US dollar rebounded, but remained strong around a two-year high below the 1.37000 price level.
Meanwhile, the euro depreciated slightly as market focus now focused on the President of the European Central Bank (ECB) who gave a speech today and may touch further on the current economy or policy.
