Ending bleakly in the last sessions, the US dollar showed a less than encouraging trading performance throughout the past week.
This shows a change in trading patterns compared to the previous week when the king of currencies reached a 2-year high.
Investors are likely to become more cautious after trading that is now tracking the last month of 2024.
The focus after this will be on the results of the last FOMC meeting on December 19 with the expectation of a 25 basis point interest rate cut by the Federal Reserve (Fed).
However, on the way to this important event, investors will face various challenges, especially involving the new President of the United States (US), Donald Trump.
Over the weekend, Trump announced that 100% tariffs will be imposed on countries that support the alternative of switching from the US dollar.
Therefore, products from countries that join the BRICS alliance will be subject to the 100% tariff.
In Japan, the Bank of Japan (BOJ) Governor signaled that an interest rate hike will be implemented in December following Tokyo's inflation reading published last week showing an increase in October.
The market is expecting up to a 56% chance of the BOJ raising interest rates by 50 basis points at its December meeting.
Several important economic data will be in the focus of investors this week which are seen as the main drivers of market direction.
The most focused data is the US NFP employment data report which will be published at the end of the week.
