The US dollar closed trading at the end of last week with a bit of gloom as the market's focus turned to the United States (US) PCE price index report which is one of the important indicators watched by the Federal Reserve (Fed).
US consumer personal spending in May showed a weak increase and was lower than market forecasts.
With that signal, the percentage of expected interest rate cuts by the Fed started to increase slightly, but investors remained assessing further developments.
Therefore, the latest data that will be published this week will be an important indicator, especially involving the reading of US employment sector data including JOLTS, ADP and NFP.
If all the data shows a declining figure, the US dollar will experience a severe contraction and investors will begin to believe that the Fed will be ready to switch to policy easing by lowering interest rates.
Meanwhile, the development of electoral events in Europe is seen to support the increase in the value of the Euro currency in the market until the opening of early July.
The euro opened higher in the Asian session this morning compared to last week's close following the early victory of far-right parties in the first round of the French election.
The yen remained in decline seeing it hover at a 38-year low against the US dollar as markets were wary of possible Japanese intervention in the market.
Other major currencies still have room to rise in the early opening of the week as the situation of the US dollar deteriorates slightly.
The upside was also for the commodity market with gold trading showing a recovery at the close of June after prices had previously plunged to the $2,300 level.
