Still maintaining the same pattern for several days, the US dollar showed further decline in the New York session yesterday.
Investors remained cautiously awaiting important data to be published today (Thursday) in addition to following global tariff developments.
President Donald Trump has announced an agreement reached with Japan, with a $550 billion investment package to the United States (US) and tariff rates lowered to 15% for imports of goods from Japan.
After the agreement was signed, there were rumors that Japanese Prime Minister Shigeru Ishiba would resign, but this was denied by him.
Starting trading in the European session, manufacturing and services PMI data will be focused on assessing the health of the important sectors in July.
The German PMI will influence the movement of the Euro currency as the main economy in Europe, with stable readings expected.
Similar data for the UK will follow with forecasts that the services sector will remain strong, but the manufacturing sector is expected to remain below the contraction level.
In the New York session, PMI data for the US will be of interest to investors with both sectors forecast to grow well in July.
In addition, investors will also be watching the results of the latest European central bank policy meeting.
The European Central Bank (ECB) is expected to keep interest rates unchanged at 2.15% after implementing 7 consecutive cuts.
What is more critical is the follow-up statement by the central bank for further monetary policy guidance.
If the tone is dovish, the Euro currency will experience a further decline after showing a promising recovery in performance since the opening earlier this week.
Also to be published in the New York session later is Canadian retail sales data which is expected to come in with a weak reading for May due to the impact of Trump's tariffs.
