The US dollar performed well at the beginning of the week by hovering around a 3-week high as investors are also cautious ahead of the release of the latest US inflation report in the New York session tonight.
Being the main guide for the Federal Reserve (Fed), the published figures will provide an idea of the direction of further monetary policy.
After recording 2.4% for May, the latest US inflation rate for June is predicted to increase to 2.6%.
The increase in inflation rates could give expectations for the Fed to maintain its existing policy, and not rush to implement interest rate cuts.
The market also did not rule out the expectation of the removal of Fed Chairman Jerome Powell with President Donald Trump's continued criticism of the central bank's decisions, which are considered to be unsuccessful.
Observing indicators for currency strength, the dollar index (DXY) showed an increase to 98.00 points and still supports the positive performance of the US dollar.
The Euro currency is still under pressure in the market as the European Union (EU) faces new tariff threats from Trump.
However, the tense situation has eased slightly as Trump has shown openness to trade negotiations.
The German ZEW economic sentiment report will be watched in the European session today which will also influence the movement of the Euro.
Meanwhile, the Pound continues to show a clear decline continuing at the early opening of trading this week.
The Pound will be driven by the release of UK consumer price index (CPI) data on Wednesday, but the market expects the June inflation rate to be unchanged from the May reading.
