The US dollar showed a gloomy movement in the last trading session last week when the focus was on the United States (US) producer inflation data, but again showed a strengthening of its value again at the opening of the first trading session earlier this week.
The US producer price index (PPI) published in the New York session last Friday came with a declining figure for September, lower than forecast.
Also of note in the last session was the consumer sentiment survey by the University of Michigan which showed a decline to 68.9 points for October after hitting a 5-month high last September.
The market still maintains expectations for the Federal Reserve (Fed) to continue cutting interest rates at its November meeting, but likely not as aggressively as in September with a 50 basis point cut.
Some of the latest indicators will be seen in the data coming this week while investors are also monitoring developments in the world's second largest economy, China.
China this past weekend announced its mega financial stimulus strategy to revive its dismal economy.
Finance Minister Lan Foan announced that the country will issue special bonds worth 2.3 trillion Yuan aimed at stimulating the economy within 3 months.
The bonds, worth around $325.5 billion, are believed to be the largest issued since the 2007 global financial crisis.
But investors are quite disappointed and still confused due to no presentation or further details of how the program will be done.
The latest Chinese inflation data for September was also recorded at a low figure of 0.4%, increasing the call for the economic stimulus program to be implemented.
However, USD investors need to be careful if the world's second largest economic stimulus situation is increasingly restoring global sentiment, the US dollar as a safe-haven currency is at risk of experiencing depreciation again.
