Anna 
In a notable shift of risk sentiment during the latter part of Monday, the dollar experienced a decline following a promising start to the week. The resurgence of risk appetite is attributed to increasing optimism surrounding the U.S. government’s potential avoidance of a shutdown, as House and Senate leaders unveiled a broad agreement on a $1.59 trillion spending deal. Additionally, the New York Federal Reserve’s monthly survey revealed a decline in consumer expectations for inflation in the upcoming year, reaching the lowest level since January 2021 at 3%, exerting additional downward pressure on the dollar.
During the Asian trading session, Japan reported that the Tokyo Consumer Price Index in December rose at an annual rate of 2.4%, slightly lower than the 2.6% increase observed in November. The USD/JPY pair, which closed marginally lower on the first day of the week, continued its descent in early Tuesday trade, hovering around 144.00.
Australia’s economic landscape showcased a positive note as the Australian Bureau of Statistics reported a 2% monthly increase in retail sales for November, surpassing market expectations of a 1.2% upturn. Despite this favorable data, the AUD/USD pair displayed no immediate reaction, retracing to approximately 0.6700.
Meanwhile, EUR/USD struggled to make substantial progress on Monday, concluding the session with minimal changes and maintaining a tight range around 1.0950 early on Tuesday.
In the currency market, GBP/USD posted modest gains on Monday, finding stability above 1.2700. The pair maintained a steady position around 1.2750 during European morning trade, reflecting a measured response to market dynamics.
