It was a bit of a surprise to investors when the US dollar at the opening trade yesterday showed a flat movement compared to expectations to continue strengthening.
The positive momentum after the United States (US) NFP employment data report at the end of last week failed to continue.
However, the expected situation regarding the monetary policy of the Federal Reserve (Fed) has not changed where steps to cut interest rates are seen to be increasingly thin to be implemented.
Investors are likely to be cautiously awaiting key indicators from US consumer inflation data on Wednesday ahead of the FOMC meeting early Thursday.
Meanwhile, the Euro currency traded at risk this week with uncertainty sweeping across Europe as the focus also turned to the election events that took place last weekend.
The Pound Sterling will react to the UK employment data in the European session shortly before Wednesday's economic growth data will be watched.
These latest data could influence the monetary policy of the Bank of England (BOE) which is now expected to follow in the footsteps of the European Central Bank (ECB) last week which has lowered its interest rates.
Meanwhile, the Yen still maintains a weak movement pattern at the beginning of the week while the market will await the results of the Bank of Japan (BOJ) policy meeting on Friday.
Other major currencies were able to 'breathe' again after being pressured last week but are expected to remain at risk with a potential re-strengthening by the US dollar ahead of the data that will be the next focus.
Gold trading is also seen to rise again above the price level of $2,300 yesterday following the momentum of the US dollar that relaxed for a while.
