The US dollar again erased the gains made at the opening of the week yesterday as investors witnessed the currency's depreciation in the New York session yesterday after the latest US inflation data report was published.
Failing to meet the forecast to increase to 2.8%, the annual US consumer price index (CPI) reading in July remained at 2.7% as previously reported.
The market is likely to once again place expectations on the implementation of an interest rate cut by the Federal Reserve (Fed) at its September meeting.
After consumer inflation was observed yesterday, investors will watch for supporting signs in the US producer inflation data to be published on Thursday and also retail sales data on Friday.
Meanwhile, investors are still watching the impact of Donald Trump's resuming tariffs on global economic growth.
The market did not react significantly to Trump's decision to sign an order to extend the 90-day tariff moratorium with China.
Speculation over Jerome Powell's replacement for the position of Federal Reserve (Fed) Chairman continues to hover with former St. Louis James Bullard said he would accept the position if offered.
While the US dollar is expected to continue to weaken for several sessions, other major currencies have shown positive recovery.
The pound strengthened in the European session yesterday and continued trading into the New York session despite the latest UK jobs report being published with less than encouraging readings.
The euro strengthened against the US dollar despite the German ZEW economic survey coming in weaker than expected. Focus will turn to German inflation data in the European session today.
The Australian dollar also recovered from its initial decline in reaction to the Reserve Bank of Australia (RBA) policy meeting which cut interest rates by 25 basis points to a 4-year low.
