The greenback held on to gains in the previous session, with the dollar index trading steady around 93.95 in the European session.
The rise of the US dollar in the Asian session was supported by selling in stock markets from Wall Street that spread to Asia following concerns over high inflation and the problems Facebook is facing.
The greenback is now awaiting the ISM survey services PMI data as the next driver of movement, which will also serve as a clue ahead of the publication of the NFP report on Friday.
Inflationary pressures are mounting as current oil prices soar to a 7 -year high after OPEC+ decided to stay with current production of 400,000 barrels a day.
Rising energy prices and concerns of rising prices of other goods could pose risks to recovery and drive borrowing costs higher.
The US dollar is expected to continue to find support from the downturn in the stock market affected by inflation concerns and the Facebook issue. Ahead of the opening of the New York session, S&P 500 futures and the Dow Jones index traded red.
However, overall investors are still wary of making large movements in the market.
The pound is stable around 1.3600 against the US dollar, but rising gas price pressures and the Brexit issue are still limiting the currency’s movement.
