The release of a number of US economic data points last week highlighted the magnitude of the threat of a recession, so that the US dollar was no longer the champion of the home market. The EUR/USD is rising.
US retail sales show a declining public interest in spending amid rising interest rates and rampant layoffs. As a result, the US dollar exchange rate fell.
Japan's central bank refused to change policy while expressing concern about the economic conditions going forward. As a result, the yen exchange rate collapsed.
Although market participants are still pessimistic about the outlook for the US dollar this year, the majority prefer to wait and see ahead of the release of US inflation data tomorrow.