President Donald Trump surprised the market with the announcement of the dismissal of Federal Reserve (Fed) Governor Lisa Cook, who was previously embroiled in allegations of fraud over her real estate assets.
He had previously warned that Cook would be removed from office if she did not resign immediately.
This situation also invited mixed speculation in the market following Trump's success in removing central bank members, raising expectations that Chairman Jerome Powell is also at risk of being removed from office.
Investors are also witnessing the world's largest financial institution now being shaken by government intervention to determine the leadership line.
Therefore, many parties are beginning to see that Trump is able to replace the central bank head according to his desired bias.
The concerns that arose have led to the strengthening of the US dollar, which has recovered from its fall in value at the end of last week.
Investors are still digesting Powell's signals at the Jackson Hole symposium with a dovish tone regarding the central bank's monetary policy.
Pressure on the labor market strengthens expectations for interest rate cuts to be implemented by the Fed at the September meeting.
US new home sales data released with better-than-expected figures for July also provided support to the US dollar.
In the New York session tonight (Tuesday), durable goods orders data and a US consumer confidence survey will be in focus and will also influence the US dollar.
