The US dollar last week managed to record its first weekly increase since mid-March after a change in market sentiment was driven by developments in current issues of focus.
Earlier last week, US President Donald Trump plunged the US dollar to a trading low of more than 2 years when he threatened to fire Federal Reserve (Fed) Chairman Jerome Powell.
However, on Tuesday, he withdrew the threat and said he had no intention of removing the US central bank chief.
In addition, market sentiment recovered when Trump announced that negotiations with China were going smoothly to resolve the tariff war.
However, investors began to be cautious heading into the end of the week when there were discrepancies in information regarding the negotiations.
Trump said that negotiations were ongoing with discussions with Chinese President Xi Jinping, but Beijing denied this.
On Friday, there were reports that China had made some US import exemptions from the 125% tariff and asked companies to review the goods eligible for tariff exemptions.
The market movement was flat at the end of the week with the US dollar also not seen continuing to strengthen further.
The focus this week will be on labor market indicators in the US with several important reports to be published.
These include JOLTS data, ADP data, PCE price index and most importantly the NFP employment report at the end of the week.
In addition, the results of the Bank of Japan (BOJ) policy meeting will also steal investors' attention on Thursday with expectations that the latest interest rates will still be maintained.
