With no major data published at the beginning of the week yesterday, the US dollar is seen to be moving strongly continuing the momentum at the close of trading last week.
The US dollar began its strengthening in the last session last week after the market digested the components of the US NFP jobs report for August.
The relatively good overall reading is seen to reduce expectations for the Federal Reserve (Fed) to move aggressively in implementing their monetary policy easing.
The majority of the market expects an interest rate cut, but likely by as little as 25 basis points.
The important indicator this week for the market is the US inflation data which will be the main indicator by the Fed for policy setting at the latest meeting.
The US dollar strengthened against several other major currencies, recovering for the first time in 5 sessions against the Yen, and rising for a second day against the Euro and Pound.
But the situation is likely to change based on US inflation figures that will be published later.
Meanwhile, the Pound will be traded at risk ahead of the release of the UK jobs report in the European session today (Tuesday) and the UK economic growth data on Wednesday.
While the Euro is seen to have experienced initial pressure when it is expected that the European Central Bank (ECB) will lower interest rates by 60 basis points at the policy meeting this Thursday.
