The strengthening of the US dollar at the end of last week and the momentum it tried to maintain at the beginning of the week was seen to change on Tuesday's trading yesterday when the king of the currency has returned to moving weakly again.
Analysts expect the US dollar to retrace its steps after last week's FOMC meeting, which has significantly weakened.
The dollar index (DXY) showed a decline to around 102,100 points while the 10-year US Treasury yield eased to a 5-month low of around 3.90%.
The Wall Street stock market is reported to be rising with the Dow Jones having broken an all-time-high.
US housing sector data was published mixed in the New York session yesterday with the number of new homes built reaching 1.56 million last month.
Existing home sales data will be awaited by investors in the New York session tonight while the focus will also be on the US consumer confidence survey data.
Towards the end of the week, the third quarter economic growth data will be scrutinized before the focus shifts to the PCE price index which is part of the inflation component in the US.
Other major currencies recovered with the US dollar weakening again to resume last week's movement pattern.
Although weak against most major currencies, the US dollar remains strong against the Yen which has experienced a significant decline following the Bank of Japan (BOJ) policy meeting yesterday.
After keeping interest rates at a low of -0.10%, the central bank signaled to still maintain their ultra-loose monetary policy.
The Australian and New Zealand dollars have managed to surge higher this week each hitting fresh 5-month highs.
The European currency saw a rebound against the US dollar seen heading back to the highs recorded during last week's surge.
The development of the commodity market, oil prices are showing recovery and are expected to have the potential to increase following reports about Yemen's Houthi group's attacks in the Red Sea that will affect supplies.
Meanwhile, gold trading cheered investors as it showed yesterday's price increase to approach the focus level at $2,050.
