After closing the end of last week on a gloomy note, the US dollar resumed its strengthening pace at the opening of the week yesterday.
Support was obtained from speeches by some Federal Reserve (Fed) officials who were 'less dovish' and signaled for policy easing to continue but less aggressively than before.
Minneapolis Fed President Neel Kashkari said investors should expect more moderate interest rate cuts for the next few quarters.
While Dallas Fed President Lorie Logan expressed her support for the central bank to continue cutting interest rates moderately if economic conditions match projections.
Looking at movement indicators for the US dollar, the dollar index (DXY) has risen to a level of 104.00 points while the 10-year treasury yield of the United States (US) jumped to a height of 4.20%, the highest since July.
Continuation of the strengthening pattern this week will maintain the strong performance of the currency king for the 4th week in a row.
However, analysts remain cautious to investors due to the risk of uncertainty ahead of the Presidential election in November, in addition to keeping an eye on the unrest in the Middle East and the development of China's stimulus.
Economists continue to monitor indicators on the latest US economic data for a picture of the Fed's policy direction, with Gross Domestic Product (GDP) growth numbers and the jobs report taking center stage next week.
Market focus today (Tuesday) will be directed at speeches by Bank of England (BOE) Governor Andrew Bailey, Philadelphia Fed President Patrick Harker as well as key events such as the BRICS and IMF conferences.
