The US dollar strengthened in the New York session yesterday after moving flat in previous sessions.
Investors are watching the US retail sales data report published yesterday with a declining data reading for May.
Increasingly cautious, investors will take precautions ahead of the latest FOMC meeting results early Thursday morning.
In addition to the Federal Reserve (Fed), the Bank of England (BOE) and the Swiss National Bank (SNB) will also announce their respective interest rate decisions at this week's policy meeting.
The Bank of Japan (BOJ) on Tuesday kept interest rates unchanged at 0.50%
The development of the Iran-Israel war is still the main driver of market sentiment at the moment with tensions still showing no signs of easing.
As of the update on Wednesday morning, Israel is still continuing its attacks on Iran and claims to have bombed an Iranian missile production facility.
America has also intervened in this war situation by moving its warplanes to the Middle East and President Donald Trump said that they have full control of Iranian airspace.
Trump has previously said that he does not want a ceasefire, but rather an absolute end to the war between Iran and Israel.
However, both countries are still seen as unwilling to ease their attacks.
With American intervention, the situation may risk getting 'uglier' and risk-off sentiment will continue for a longer period.
