Like trading at the beginning of the week, the US dollar on Tuesday also continued to strengthen its value pattern with the sentiment of Donald Trump's victory in the United States (US) presidential election that took place last week remaining a driving factor.
In addition, the actions of the Federal Reserve (Fed) which lowered interest rates to a smaller amount of 25 basis points also supported the movement of the US dollar this week.
The focus is now shifting to a new indicator for the Fed, which is the US consumer price index (CPI) data that will be published in the New York session tonight.
Will encourage further strengthening of the US dollar, expectations for the CPI data that measures the US inflation rate in October will rise again to 2.6% compared to 2.4% in the previous month.
Analysts also put low expectations for interest rate cuts by the Fed after this, following the fact that high tariffs by the Trump administration could push prices higher.
The US dollar is now strong at a 6-month high and is expected to continue to put pressure on other major currencies in the market.
Concerns about the issue of Trump's tariffs have also been an additional factor on the pressure on the Euro currency in addition to the direction of the European central bank's monetary policy.
The euro sank to its lowest level since November 2023 against the US dollar after the decline in prices in the New York session yesterday has surpassed the lowest level recorded last April.
The pound also failed to extend its gains last week when pressure from a strengthening US dollar sent prices down to 3-month lows.
Asian currencies including Aussie and Kiwi dollars and Yen are also facing pressure in the US dollar situation which is currently dominating.
