Mixed market conditions have investors remaining cautious for the first week of trading in early March, which saw the US dollar fail to perform well.
President Donald Trump's speech in Washington yesterday slightly eased tensions at the weekend meeting with Ukrainian President Volodymyr Zelenskyy.
Trump announced that Zelenskyy is ready to return to the negotiating table and will sign the previously demanded mineral agreement.
Although tensions have eased slightly, analysts are still assessing the risk sentiment surrounding the market with a focus on the tariff war issue.
With the start of the tariffs announced by Trump in early March, China has announced retaliatory tariffs on US imports.
Canada will also not be silent, describing Trump's tariff action as an inappropriate and unfounded move.
Prime Minister Justin Trudeau, who has imposed 25% retaliatory tariffs on US goods worth C$30 billion, is targeting an additional C$125 billion to be imposed.
In addition to the issues focused on the market, investors also looked at the release of important economic data in the New York session yesterday.
The ADP report measuring US private employment recorded a slow increase of only 77,000 in February, lower than the forecast of 141,000.
This showed the slowest increase in 7 months.
The figure was also lower than the 186,000 updated for January, signaling a less favorable outlook ahead of Friday's NFP employment report.
Meanwhile, the ISM survey service PMI data for February showed a strong reading above the 50-point mark and exceeded forecasts and the previous month.
The US dollar appeared weak, extending its 3rd consecutive day of decline, giving room for other major currencies in the market to rise.
The European Central Bank (ECB) policy meeting will be in focus in the New York session with expectations of a 25 basis point interest rate cut to continue easing policy.
The euro, which maintained its strength from the beginning of the week, is likely at risk of experiencing a depreciation after the interest rate decision is announced.
