The opening of the European session saw investors return to caution ahead of the release of the FOMC meeting minutes report early Thursday morning (3.00am Malaysian time).
This caution caused US bond yields to stop from recording gains and greenback dollar trading also retreated from the 2 -week high it reached on Tuesday.
From the minutes of the latest FOMC meeting, investors will be looking for clues as to the possibility of when interest rates will start to rise.
The Federal Reserve (Fed) has previously decided to double its monthly bond purchase reduction which is expected to expire in March 2022. Policymakers are also seeing three interest rate hikes this year.
This in turn raised investors' confidence that interest rates would be raised sooner than expected to curb inflation.
Even so, the latest outbreak of Covid-19 is a bit of a concern for investors, especially after the United States recorded its highest daily case on Monday with a figure in excess of 1 million.
Although at this point no restrictions are implemented, but if the contagion gets out of control it can affect some sectors of the economy.
Meanwhile, the trading movements of major currencies are also limited by continuing to trade at around the same price. The pound and euro are stable around the 1.3500 and 1.1300 price levels against the USD, respectively.
