Market analysts examine the market movement at the end of last week and assess the occurrence of profit-taking activity following the changes in the current price direction on several major charts.
The US dollar is seen to have experienced a significant decline last week starting after the FOMC meeting with a dovish signal from the Federal Reserve (Fed) regarding the direction of monetary policy in 2024.
The situation is expected to continue for some time and will put the US dollar under pressure.
Even so, the US dollar is seen not to continue the decline at the close of last week's trade but instead shows a recovery compared to several major currencies.
Also an additional factor in restoring the US dollar from continuing to decline, was a statement delivered by the President of the New York Fed, John William, who eased expectations for 'cut rates' action by the central bank in an interview on CNBC.
According to him, at this time the interest rate cut is not a topic of central bank discussion.
When asked about the interest rate cut in March 2024, he responded that it was too early to think about that.
Therefore, before last week's trading curtain was anchored, the US dollar was seen to show a successful re-strengthening as compared to the Euro and the Pound.
If observed last Friday, manufacturing and services PMI data in Europe and the UK were published with gloomy readings, making both the Euro and the Pound weaken again and paring back previous gains.
The same data published for the United States (US) in the New York session showed mixed readings for both sectors.
Several other key data will be in the market's focus this week including UK and Canadian inflation, third quarter US economic growth data as well as consumer confidence data and the US PCE index.
