The US dollar has managed to maintain its strengthening pattern for 3 consecutive days until Tuesday, indicating a continued recovery from last week's close.
Investors' focus is likely to return to the issue of trade war tensions between the United States (US) and China, which is driving current sentiment.
President Donald Trump is confident that a strong agreement can be reached with China, but warned that if an agreement is not reached by November 1, China will face 155% tariffs.
The appeal of the US dollar as a safe-haven currency is seen to increase, thus reducing the losses that have been faced throughout last week's trading.
In addition, investors are also examining important indicators in the market leading up to the next FOMC meeting at the end of October.
After the first interest rate cut in September, will the Federal Reserve (Fed) continue to take action?
Constraints are faced when the US government shutdown affects the publication of important economic data for several weeks.
After a delay, US inflation data, which is a key indicator for central banks, is scheduled to be published this Friday.
The US annual inflation figure for September is expected to rise higher, exceeding 3.0%, which will also influence the Fed's monetary policy decision.
For European trading today (Wednesday), investors will focus on the UK inflation report, which will influence the movement of the Pound currency.
