The currency market traded cautiously at the end of last week as investors prepared for Donald Trump's inauguration as the new President of the United States (US) earlier this week.
Trump is expected to announce up to 100 executive orders in the implementation of his administration's policies.
However, the US market, which is closed in conjunction with Martin Luther King Jr. Day, is expected to slow down the movement in the New York session.
The US dollar has shown strengthening in the middle of last week in reaction to the US inflation data published.
The latest inflation readings that increased following the jobs report published earlier, provide guidance for the Federal Reserve's (Fed) monetary policy ahead of the first FOMC meeting of 2025 at the end of this month.
However, towards the end of last week, the US dollar's momentum began to fade following the US retail sales data reading that recorded a decline in December.
Investors also began to take precautions ahead of Donald Trump's inauguration as President this week.
