As expected for the opening trade early this week, the US dollar remained weak throughout Monday as investors still digested the NFP employment report published last Friday.
The worrying situation for the declining employment sector in the United States (US) currently continues to put pressure on the performance of the US dollar following the increased expectation for an interest rate cut to be implemented at next week's meeting.
The market is eagerly awaiting whether the Federal Reserve (Fed) will make its first interest rate cut this year after keeping it unchanged at 4.50% previously.
If the cut begins at the September meeting, market analysts expect there to be an extension for subsequent cuts at the end of 2025.
Also tracking the same performance, the yen currency was also traded passively following the announcement of the resignation of Shigeru Ishiba as Japanese Prime Minister with less than a year in office.
In Europe, political unrest erupted in France following the defeat of Prime Minister Francois Bayrou in a no-confidence vote in Parliament for his budget-cutting plan to address the country's debt crisis.
European currencies, however, did not show a significant reaction to the situation with the Euro continuing to take advantage of the opportunity to strengthen while the US dollar was under pressure.
The pound also climbed to a new 3-week high in an attempt to maintain the momentum of the surge after the NFP report at the end of last week.
This week's focus will be on the US inflation report which will be a more critical indicator for the Fed ahead of the FOMC meeting next week.
