The US dollar continued its bearish movement in the market with a decline in value shown in the New York session trading, Tuesday yesterday.
This situation was expected by investors during the weak opening of the week by the currency king after investors had already examined several signals of a trend change at the close of trading last week.
The development of global tariffs is in the spotlight with the latest report, President Donald Trump announced that a trade agreement with Japan was successfully reached, involving investments of $550 billion to the United States (US) and a tariff rate set at 15% for imported goods from Japan.
With the continued decline of the US dollar, European currencies including the Euro and Pound showed excellent performance early this week after the pressure of the previous few weeks began to subside.
The Australian dollar, yen and Canadian dollar also showed a recovery in their respective performance for early trading this week.
Investors will await the release of manufacturing and services PMI data reports for Germany, the UK and the US on Thursday to assess the direction of further currency movements.
The euro will face additional pressure ahead of the European Central Bank (ECB) policy meeting, with expectations that interest rates will remain unchanged.
Investors are still concerned about the issue of the removal of Federal Reserve (Fed) Chairman Jerome Powell after repeated pressure from President Trump.
However, the issue was eased slightly when US Treasury Secretary Scott Bessent stated in an interview with Fox Business Network that Powell does not need to resign immediately.
