The lack of focused economic data at the beginning of the week expects a slow market movement.
The US dollar moved against expectations when it showed a depreciation in value during trading leading up to the close of the New York session.
In the previous session, the king of currencies managed to continue its strengthening momentum after the US (US) NFP employment report published late last year came with encouraging figures.
However, the momentum did not continue in yesterday's New York session, which saw the US dollar move slightly weaker.
However, analysts still expect the US dollar to remain strong as the focus now shifts to US inflation data.
On Tuesday, the producer price index (PPI) will be published before the consumer price index (CPI) reading on Wednesday, which is an important indicator for the Federal Reserve (Fed).
The dollar index (DXY) has broken through the 110.00 level, reaching its highest level since November 2022.
Meanwhile, the US 10-year treasury yield is now at 4.80%, the highest since November last year.
In the European session shortly, the focus will first be on the UK inflation report which will be a guide for the Bank of England (BOE) to set monetary policy.
In addition to inflation, UK retail sales and economic growth data to be published this week will be the drivers of the Pound currency movement.
Including the Pound, other major currencies in the market are currently showing a recovery from the pressure of the US dollar strengthening last week.
