Attention is focused on the US inflation report published in the New York session yesterday with slightly surprising figures.
The US annual consumer price index (CPI) reading fell below 2.8% compared to the forecast of 2.9%, from the previous month's 3.0%.
The monthly and core CPI readings were also lower than their respective forecasts.
This situation is seen as adding to the pressure on the US economy following the dismal NFP employment report published last week.
Although there seems to be an attempt to show recovery, the US dollar remains weak heading into the end of the week.
Pressure on the US dollar is still driven by the issue of the tariff war that is heating up this week.
President Donald Trump previously threatened to double Canadian tariffs by up to 50% after Ontario imposed electricity tariffs on the US.
Most recently, Canada is reported to be imposing tariffs on C$29.8 billion (RM91.18 billion) of US imports that will take effect on Thursday in response to Trump's steel and aluminum tariffs.
Among the highlights in the New York session yesterday was the decision of the Bank of Canada's (BOC) policy meeting which met expectations to lower interest rates by 25 basis points to 2.75%.
Policy easing is expected to continue as the central bank expressed concerns about the economic outlook due to the tariff war with the US.
In the New York session tonight, the US producer inflation report will be watched along with US unemployment benefit claims data.
