Turbulent, Will the USD Explode Again This Week?

<p>&nbsp;Markets moved slowly at the start of trading early in the week, with the US dollar trying to find support to continue strengthening against its main rival during the European session.</p><p><br /></p><p>Last Friday, Federal Reserve (Fed) Chairman Jerome Powell shook the financial market with hawkish statements.</p><p><br /></p><p>Powell pointed out that the central bank may need to keep raising interest rates to lower inflation, which is still too high.</p><p><br /></p><p>As a result, investors are now expecting another interest rate hike by the end of the year.</p><p><br /></p><p>This has pushed the US dollar to a new two-month high against a basket of major currencies before retreating slightly following profit-taking by the market before the end of last week's trade.</p><p><br /></p><p>Until the opening of the European session, the US dollar tried to climb back to the highs it reached last week, seeing the dollar index slightly up at 104.15 at the time of writing.</p><p><br /></p><p><br /></p><p>With no major economic data published today, currency markets are expected to continue to be influenced by factors from Powell's speech last week.</p><p><br /></p><p>However, investors need to be cautious as this week will be filled with high-impact data such as gross domestic product (GDP), consumer personal spending and US NFP employment.</p><p><br /></p><p>Meanwhile, the euro is trying to fend off further declines, seeing the currency trade at around 1.0800 against the greenback.</p><p><br /></p><p>The pound failed to maintain its position by slipping back below the price level of 1.2600 against the US dollar.</p><p><br /></p><p>On the other hand, the Aussie and New Zealand dollars weakened again to continue trading weaker at nine-month lows against the greenback.</p><p><br /></p><p>Additionally, the yen continues to trade under pressure after touching its latest weakest level since November 2022 on Friday, seeing it now trading around 146.55.</p>