The depreciation of the US dollar that came after the US inflation data was published again eased and saw the currency move steadily against other major currencies again.
Curbing the further depreciation of the US dollar was the release of US producer price index data with a good reading of 1.0% as the previous reading, compared to the expected decline to 0.6%.
Producer prices, which recorded the biggest annual jump in more than a decade in the 12 months to July, still gave an indication that inflation remained strong.
This is likely to give investors an idea of the Federal Reserve's (Fed) policy tightening plan with a reduction in bond purchases (tapering) as discussed earlier.
Additionally, the results of a Reuters poll show the majority expect the Fed to announce asset tapering plans at its September meeting and do not expect the announcement to take place at this month’s Jackson Hole conference.
Moreover, different data showing the rate of unemployment claims by U.S. citizens in the previous week recorded a decline in the wake of the economic recovery from the ongoing pandemic.
The US 10 -year treasury yield is still showing an uptrend, but has not yet crossed the 1.40%level. The improvement displayed to some extent also supported the recovery of the performance of the US dollar over the weekend.
The Euro and Yen still survived, but several other currencies such as the Pound and the Aussie dollar failed to contain pressure by the US dollar and recorded price declines again.
Meanwhile, the gold commodity is still stable from falling in value like last weekend's situation and continued at the market opening earlier this week.