Currency market trading at the beginning of the week was gloomy with the absence of focal economic data that could drive the direction of price movements.
The US dollar is seen not to continue the strengthening pattern of last week as investors saw the currency move weakly in the New York session yesterday.
However, analysts do not see any change in the factors that have been supporting the US dollar trading since last week which focused on the monetary policy of the Federal Reserve (Fed) in addition to the sentiment of Donald Trump's victory in the election.
Recent economic data such as the United States (US) inflation which has started to show a rebound has limited expectations for the central bank to continue its policy easing measures.
This was followed by a statement delivered by Fed Chairman Jerome Powell himself last week that the central bank is in no rush to lower interest rates as the economy is still considered strong.
Investors are also worried about Trump's tax and tariff policies after taking over the administration in the White House, which risks re-inflation.
Most of the major currencies showed some recovery in Monday's trading yesterday, but are still at risk of facing the pressure of a strengthening US dollar after this.
Today's market focus will be on the minutes of the Australian central bank (RBA) meeting in the Asian session and the minutes of the central bank of England (BOE) in the European session.
In the New York session, Canadian inflation data will be watched by investors to get an idea of the monetary policy direction of the central bank of Canada (BOC) which is on the path of easing their policy.
Developments in Japan, the central bank's top officials signaled further tightening of monetary policy, but did not specify a timeframe for implementation.
Bank of Japan (BOJ) Governor Kazuo Ueda emphasized that the economy is growing well, opening the way for interest rate hikes to be implemented as early as next month.
