The US dollar remained at a 2-year high, but failed to regain its strength in Tuesday's trading session.
The US dollar's decline was reflected in the New York session yesterday as the market reacted to the US producer inflation data released.
The monthly reading of the producer price index (PPI) for December recorded a slower increase of 0.2% compared to the forecast of remaining at 0.4% as in the previous month.
This also triggered expectations for consumer inflation to be published in the New York session tonight (Wednesday) to also slow down.
The main focus of the market this week, the US consumer price index (CPI) data is forecast to increase higher to 2.9% for December compared to 2.7% previously.
Investors have also started to take precautions as the time draws near for Donald Trump to take office as leader.
The issue of tariffs and taxes in the US continues to invite continued speculation in the market that affects expectations for inflation and also the monetary policy of the central bank.
Assessing the indicators for the US dollar, the DXY index showed a decline to the 109.200 level but the US 10-year treasury yield remained at its highest since October 2023 at 4.80%.
With the US dollar weakening, the Euro managed to recover to the $1.0300 price level, while the Pound remained weak, falling for 6 consecutive sessions.
Asian currencies including the Aussie dollar and the Yen were seen moving sideways awaiting new guidance heading into the end of the week.
