The US dollar appears to be trading cautiously ahead of a number of important events that are the focus of the market tonight, with a slight decline during the opening of the European session.
The dollar index, which measures the strength of the greenback against six major currencies, traded little changed at 92.05.
The US 10 -year treasury yield remains a critical factor driving the movement in the market despite a slight decline from a one -year high by hovering around 1.53%.
The release of inflation data to be released tonight is expected to affect US bond yields. The US inflation rate is expected to increase in February with a reading of 0.4% compared to 0.3% recorded the previous month.
The market focus is also targeted at the 10 -year government bond auction that will take place during the New York session. Last week, a 7 -year government bond auction pushed U.S. bond yields to their latest one -year high of 1.62%.
Meanwhile, the House of Representatives will hold a vote on the Senate-amended U.S. stimulus package bill, paving the way for it to be signed by President Joe Biden.
The Canadian dollar traded lower ahead of tonight’s Bank of Canada (BOC) policy meeting, which is expected to keep interest rates unchanged and boost growth projections following improved economic prospects.
