In contrast to last week, the US dollar at the opening of the market earlier this week was more positive following the injection of market sentiment which was assessed as risky again.
Reports of deaths in China related to Covid-19 infection worsened the previous situation with a surge in cases of the virus.
In fact, Guangzhou ordered Baiyun district to undergo a 5-day movement restriction starting today to contain the worsening situation.
The US dollar as a safe-haven currency is expected to have the advantage to strengthen again this week even though market movements in the Asian and European sessions are still slow.
Thus, the other major currencies in the market are at risk of experiencing depreciation again after several weeks of taking advantage of the opportunity to rise as the US dollar moves bleakly.
In addition, investors also continue to monitor the development of the central bank's monetary policy with several views by the President of the Federal Reserve (Fed) hovering in the market.
Among them were comments by Atlanta Fed President Raphael Bostic who expressed readiness to move away from the proposed 75 basis point increase in interest rates at the end of the year meeting.
Based on FedWatch's CME gauge, the percentage of rate hikes of 50 basis points in December rose to 80%.
The minutes of the FOMC meeting will be in focus this week along with other key data such as the United States (US) manufacturing and services PMI data, retail sales data and the US consumer confidence survey.
The commodity market this week is also expected to be gloomy continuing last week's situation with the decline in crude oil prices in addition to the decline in the value of gold.
