The index of US dollar or DXY erase the decline which has been happened before. It was especially after the non-farm payroll (NFP) data release last week. There is a consolidation to note. 

The USD exchange indicator to the major currencies are consolidated around the level of 92.20 when this news was released ahead the last Asian session. What is next? 

The Disappointing US Non-farm Payrolls data at the end of last week has eroded expectations for a tapering announcement by the America's Federal Reserve at this month's policy meeting.

However, the data also reminded markets that global economic growth is starting to lose the momentum. The new economic data from several countries are not in line with the prediction. 

Will the Growth Data Increase? 

The Survey results from manufacturing industries in the UK and Japan also showed that the increase in delta COVID-19 cases has sucked up the optimism of the public and businesses. 

As a result, the market participants are reluctant to switch to the higher-risk non-USD currencies. The key of a narration for some weeks ahead is how sharp the growth data is. 

It means that whether they can be recovered normally and globally or not. It is also how the delta variant is developed when the students come back to school based on the plan. 

Meanwhile, from the momentum perspective, it is about whether they can see the institutional investors give their capital again or not. Market is now highlighting the economic calendar. 

Meetings may be Held

A number of major central banks schedule meetings and policy announcements this week. That is why; the traders tend to take profits first in anticipation of possible surprises.

The Australia Central Bank or RBA meeting held yesterday was ended in a flat result. It means that there were not any changes which can be noted. The next turn is for the Central Bank of Canada or BOC. 

That will be held on Wednesday And the European Central Bank (ECB) on Thursday. Some experts think that it is too early for the ECB to discuss about tapering. That is not all. 

Some representatives may agree to slow down the obligation purchase related to the EuroZone inflation increase lately. Meanwhile, the USD was rising yesterday. 

The USD Yield Obligation Increase

The rising USD pressed the Euro which is waiting for the ECB monetary policy. The index of dollar increased by 0.33% to 92.51 when this news was released. Meanwhile, the EUR/USD slipped.

That pair was slipped by 0.22% to the level of 1.1844. The strengthening U.S. dollar tonight was supported by the rising bond yields which can be seen lately in the market. 

It is especially before the America's government faces maturities to sell $120 billion worth of bonds in new supply this week. The details are $58 billion for 3-year tenors, $38 billion for 10-yearly, and $24 billion in 30-year bonds.

Currently, the 10-year bond yield in America is traded at 1.366%, up from 1.299%, Friday's level before U.S. Employment data was released. Brown Brothers analyst Harriman said his opinion. 

The Central Bank Policies Become a Consideration

yields had helped the Dollar Index to recoup post-NFP losses while shoring up a slight strengthening. In addition, the policies of central banks such as the Fed and ECB are important. 

That becomes the main consideration of investors in determining their positions. Both central banks are expected to tapering stimulus. The United States Treasury yield obligation increase brings an effect. 

Lagarde and her colleagues are expected to cut the pandemic relief funds (PEPP) from 80 billion euros to 60 billion euros. However, the timing of its implementation is still a matter of debate.