The US dollar closed trading at a strong close at the end of last week to record a strengthening to a 2-year high.
The situation was also driven by economic data published in the last session of last week, which saw the US (US) manufacturing and services PMI record encouraging figures for November.
However, the king of currencies retreated slightly in trading earlier this week with investors seeing a difference in the opening price gap in the Asian session Monday morning on the charts of major currency pairs.
The US 10-year treasury yield has fallen from 4.41% to around 4.35% following Donald Trump's selection of Scott Bessent, a prominent investment fund manager, for the position of US Treasury Secretary.
However, market analysts are still confident in the potential of the US dollar to continue its strengthening pattern this week and put pressure on other major currencies.
The Euro was among the most notable to fall, falling to its lowest level since November 2022 against the US dollar at the end of last week.
The market is also expecting further easing of monetary policy by the European Central Bank (ECB) as well as economic pressure in Europe ahead of the transition of the Donald Trump administration as the new US President.
The Pound Sterling plunged to a 6-month low after UK retail sales data was released last week along with disappointing PMI data, putting pressure on the Bank of England (BOE) to continue cutting interest rates further.
The Yen, meanwhile, has investors cautious about trading this week after Japan was reported to be preparing a stimulus package worth 13.9 trillion yen ($89.7 billion) aimed at easing household pressure facing rising prices.
