The US dollar maintained its steady strengthening pattern through the early opening of this week, pointing to positive trading for the start of November.
However, it should be noted that the Federal Reserve (Fed) cut interest rates by another 25 basis points at last week's FOMC meeting following the first cut of the year in September.
Fed Chairman Jerome Powell did not signal a further cut at the December meeting and there is an expectation that the rate cut at the October meeting will be the last.
Markets will continue to examine the latest economic data as the US dollar continues to strengthen to a 3-month high against the Euro.
In addition to the pressure on the Euro, the Pound also plunged to a fresh 7-month low against the US dollar as investors prepared to await the outcome of the Bank of England (BOE) policy meeting this week.
The previously risk-on market sentiment was soothed by the meeting between US President (US) Donald Trump and Chinese President, Xi Jinping in South Korea last week.
Trump agreed to postpone the reciprocal tariff increase and cancel the plan for an additional 100% tariff as previously warned.
The two countries also agreed to reduce their respective restrictions, thus easing the tension of the protracted trade war.
In the New York session yesterday, investors focused on the US manufacturing PMI report from the ISM survey which showed a contraction in the October reading.
The 48.7 figure recorded was lower than the previous 49.1, remaining below the 50-point level since April.
Thus, it can be observed that the strengthening of the US dollar was quite limited in trading in the New York session yesterday and slowed down the previous momentum.
