Cautious sentiment continued to dominate the market during the European session, seeing US dollar trade remain stronger against most major currencies ahead of the release of US inflation data tonight.
At the time of writing, the dollar index is trading around 93.14 against its main competitor.
The greenback has reaped huge gains from very encouraging US jobs data last week, having put euro trading on the verge of its lowest level this year.
Meanwhile, a 10 -year higher rise in U.S. treasury yields also dragged the Japanese yen to a five -week low against the U.S. dollar.
In addition, the European session market also saw the U.S. Senate approve a $ 3.5 trillion budget framework proposed by President Joe Biden. However, the market did not react significantly following the report.
The main focus is now on the release of US inflation data which is expected to show a decline compared to previous readings, signaling the rise in inflation has begun to subside.
In addition, the market will also see speeches by Federal Reserve (Fed) policymakers Raphael Bostic and Esther George for further clues on the central bank’s upcoming monetary policy setting.
Meanwhile, the pound slipped to a two -week low against the strong USD, amid concerns over the Brexit issue, where the UK government may extend its emergency powers to trucks heading to France in a bid to exercise Brexit rights.
