The US dollar has shown a pattern of depreciation in trading towards the end of last week, failing to continue the strengthening displayed on Tuesday.
Looking back at last week's trading, the strengthening of the US dollar was initially triggered by the latest US inflation report with the consumer price index (CPI) reading for June rising higher than expected.
This has increased expectations for the Federal Reserve (Fed) to maintain its current policy and may not rush to lower interest rates.
However, the momentum of the US dollar's strengthening was interrupted when the focus shifted to the issue of the removal of Fed Chairman Jerome Powell by President Donald Trump, following the increase in inflation.
Until the end of the week, the US dollar showed an increasingly dismal performance despite a slight strengthening at the close of the last session of the week.
The focus this week is on important data that assesses the main sectors of the economy and provides a picture of the current health of the market.
Global tariff developments will also be closely watched after Trump extended the tariff moratorium to August 1.
Only a few countries have reportedly reached an agreement on tariff negotiations with the US.
US Treasury Secretary Scott Bessent told Japanese Prime Minister Shigeru Ishiba that their countries were able to reach a good agreement on the tariff issue after their meeting in Tokyo.
