Although not very noticeable, the US dollar in trading yesterday Wednesday has gradually begun to show its strengthening pattern.
As a safe-haven currency, analysts have assessed the potential for strengthening the US dollar in the near term following the renewed tension in the Russia-Ukraine war conflict.
Ukraine on Tuesday launched missiles into Russia, marking the 1,000th anniversary of the protracted war, using weapons previously supplied by the United States (US) that were authorized by President Joe Biden.
Investors will continue to monitor further developments in the war in the current cautious market environment.
Meanwhile, the Federal Reserve's (Fed) monetary policy is still being focused on in assessing policy changes in the upcoming Donald Trump administration.
Trump's tax cuts and tariffs on goods have sparked concerns about a resurgence in inflation in the United States.
This situation will make it difficult for the Fed to continue easing policy and may need to switch back to tightening monetary policy.
Looking at the economic data releases, in the European session yesterday, UK inflation data was released which recorded a higher figure of 2.3% for October, exceeding the forecast of 2.2%.
The increase in the figure from the previous month's 1.7% level had a temporary effect on the Pound currency, but it fell again in the New York session trading.
For today (Thursday), the focus will be on US unemployment benefit claims and home sales data.
At the end of the week, the focus will shift to PMI data to assess the current health of the economy through the manufacturing and services sectors.
