The US dollar was slightly under pressure against most major currencies, but hopes for a Fed rate hike next year are still supportive.
The US dollar index (DXY) maintains its position at the range of 94.00 in Asian trading earlier this week (8/November).
Market participants continue to monitor discourses regarding the projection of the Fed's rate hike ahead of the release of US inflation data the day after tomorrow.
The greenback was somewhat depressed against most major currencies, but hopes for a Fed rate hike next year still underpin the world's reserve currency.
Announcements of a number of central banks over the past two weeks have suggested a reluctance to raise interest rates simultaneously.
The surprise announcement by the British central bank (BoE) on Thursday was the culmination of a sudden re-evaluation of the rate hike projections for major currencies, both in the UK and other countries.
"Central banks have been distorting a lot of markets (with monetary stimulus or Quantitative Easing), pumping equity markets and pumping bond markets," said Jason Wong, a strategist at Bank of New Zealand (RBNZ), "Currencies money is in the middle of it all, wondering what's really going on."
This week, the market will focus on the rhetoric of central bank officials and US inflation data.
At least six Fed officials, including Chairman Jerome Powell, have public communications scheduled.
BoE Governor Andrew Bailey also has a similar agenda.
They don't necessarily mention inflation or interest rates, but the comments that appear may attract attention.
Meanwhile, Goldman Sachs recently advanced its projection of the Fed's rate hike from Q3/2023 to July 2022.
Goldman Sachs also believes that an earlier Fed rate hike would be supportive for the greenback.
Although they still expect the dollar to weaken in 2023, they have lowered their estimate of the depreciation rate of the US dollar against the euro.
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