Investors are pricing in the Fed’s hawkish stance on interest rates trajectory.Japanese Finance Minister Shunichi Suzuki emphasized that the country has to choose between stimulating consumption or promoting wage growth.trades near 148.90 close to an 11-month high during the Asian session on Tuesday. The US Dollar continues to strengthen, partly due to cautious market sentiment and higher US Treasury yields.
Additionally, there are concerns about the potential consequences of a federal government shutdown, as both US President Joe Biden and a senior adviser have warned about the widespread difficulties it could cause, including the loss of food benefits for nearly 7 million low-income women and children.
Investors will likely watch key data releases later in the week, including US Consumer Confidence, Durable Goods Orders, Initial Jobless Claims, and the Core Personal Consumption Expenditures Price Index, which is the Federal Reserve's preferred measure of inflation.