Markets will face a busy week with the release of key economic data and three central bank policy meetings this week.
Among the most focused is definitely the FOMC policy meeting which will see the Federal Reserve (Fed) interest rate decision with an expected increase of 25 basis points will be implemented.
At the same time, the follow-up statement from Chairman Jerome Powell was also focused on by investors to get an indication of the direction of future policy.
Markets will be further informed by preliminary readings of US gross domestic product (GDP) for the second quarter on Thursday.
However, investors' focus will be directed to manufacturing and services PMI data from the United States, the UK and the European Zone first, which will be published in the European and New York sessions today.
Following currency developments, the dollar index, which measures the strength of the greenback, traded flat at around 101.03 after rebounding from last week's lows.
The US dollar was supported by a weaker yen following reports that the Bank of Japan (BOJ) will keep its policy stance unchanged at this week's meeting.
The Aussie and New Zealand dollars were among the currencies most affected by the strengthening US dollar, seeing each trade lower in the Asian session.
Aussie dollar investors will be treated to Australian inflation data for the second quarter on Wednesday which will be used as a guide for the Reserve Bank of Australia's (RBA) interest rate decision.
However, the euro was little changed with prices hovering around 1.1127 against the US dollar amid expectations the European Central Bank (ECB) will raise rates by 25 basis points this week.
The pound also showed similar movements, where it traded at 1.2850 against the greenback ahead of UK PMI data in the European session today.
With plenty of economic data and policy meetings to take place, the market is expected to exhibit 'crazy' movements throughout the week.
