Hovering at a 7-month low, the US dollar continued to decline to lower levels on Tuesday yesterday in the absence of any key economic data that could drive the market.
Markets remain influenced by expectations of an interest rate cut by the Federal Reserve (Fed) at its September meeting, with the latest indication to be seen in Chairman Jerome Powell's speech at the Jackson Hole symposium this week.
Investors want answers to questions about the amount of rate cuts and the signal of policy easing at the next meeting, but analysts do not see Powell giving clear details on those questions.
Even so, the expectations for the dovish speech that Powell will deliver continues to punish the US dollar with a continuous fall.
This period will be a golden opportunity for other major currencies to show appreciation before the situation changes again.
The lack of economic data to be published today (Wednesday) is likely to prompt a similar move, seeing the US dollar remain weak.
In the early hours of Thursday morning, the minutes of the FOMC meeting will be scrutinized and will influence the movement of the US dollar with more details on the minute report to be observed.
In addition, PMI data for the manufacturing and service sectors in Europe and the United States (US) will soon be published and the market will assess the current health level of the focus economy which may affect market sentiment.
The development of the Middle East conflict and some issues floating in the market should be watched by investors from time to time.
