USD Confused, This is a Challenging Week for Traders!

<p>&nbsp;The US dollar closed mixed in late session trading last week as uncertainty continued to plague the market.</p><p><br /></p><p>The turbulent situation in the Middle East continues to be monitored by analysts who see it as a current factor driving global market movements until continuing this week.</p><p><br /></p><p>The Hamas-Israel war conflict continues with continued attacks launched by the Israeli Zionist army on Gaza and increasingly involves the intervention of major countries including the United States and Russia.</p><p><br /></p><p>The strengthening momentum of the US dollar last week stalled after a speech by Federal Reserve (Fed) Chairman Jerome Powell hinted that a rate hike would not be implemented in the near term.</p><p><br /></p><p>The majority of the market expects interest rates to be kept on hold at the November meeting and it is likely that if a rate hike occurs, it will be in December.</p><p><br /></p><p><br /></p><p>The United States (US) 10-year treasury yield is hovering at 5.00% which is the highest level reached since 2007.</p><p><br /></p><p>While the dollar index is flat above the level of 106.00 points, slightly down from the height of 107.30 reached at the beginning of last October.</p><p><br /></p><p>Pressure on other major currencies eased slightly as the strengthening of the US dollar last week faded again.</p><p><br /></p><p>The Euro will trade cautiously this week as investors await the outcome of the European Central Bank's (ECB) policy meeting after President Christine Lagarde's previous dovish signal.</p><p><br /></p><p>The focus of investors is the Japanese Yen currency as at the end of last week it almost touched the critical level of ¥150.00 against the US dollar.</p><p><br /></p><p>Investors are looking forward to potential intervention by the Japanese central bank and government into the market which will trigger a drastic move in the Yen in a short period of time.</p>