The US dollar experienced a decline in early trading yesterday following the previous week's movement pattern.
The market situation focused on the launch of Chinese AI application, DeepSeek, which is a challenger to OpenAI's ChatGPT and Meta platform, inviting a massive sell-off in technology stocks.
Chip giant Nvidia experienced a significant share sell-off with the largest daily loss ever recorded in history.
Nvidia's market value lost $589 billion and also dragged most of the major stocks in the S&P 500 index to experience their biggest daily declines.
The US dollar weakened in the European session yesterday, but recovered slightly during the New York session yesterday.
Market sentiment that is considered risky will give an advantage to safe-haven currencies with the Yen and Swiss franc already showing excellent gains.
The US dollar showed strengthening at the opening of the Asian session this morning (Tuesday) but is at risk of weakening again which could be influenced by the development of President Donald Trump's administration policies.
Investors are also cautiously awaiting the outcome of the first FOMC meeting of 2025 early Thursday morning.
The majority expect the Federal Reserve (Fed) to keep interest rates unchanged despite Trump's push for lower rates.
The focus today is on the US consumer confidence survey data which could drive the US dollar's movement in the New York session.
