The United States dollar index or it is also known as DXY stabilized below the 102.00 threshold that has been occupied since last week. Meanwhile, the US dollar showed mixed performance.

This can be seen in major currency pairs in the Asian session (30/January). The greenback is putting pressure on the risker-sensitive Aussie and Loonie dollar. 

However, the euro and sterling held on to multi-month highs versus the US dollar. USD/JPY and USD/CHF were relatively stable near the 130.00 and 0.9200 thresholds, respectively.

If it fails to break out of its current eight-month low, the USD index could potentially close January with a monthly decline of more than 1.5%. This will also be the fourth straight month of decline for Dixie. 

Policy Meeting Result waits 

The majority of market participants are likely to be wait-and-see ahead of the policy meetings of the Federal Reserve, Bank of England (BoE), and European Central Bank (ECB) in the coming days. 

As a result, market movements tend to be minimal at the beginning of the week. Even the release of good United States GDP data failed to excite buying interest. 

Markets believe that BoE and ECB will both raise interest rates by as much as 50 basis points, a.k.a. greater than the Fed. However, traders will likely pay more attention to the details in the results of the central banks' meetings.

It seems that they will more pay attention on that than the interest rate announcements. People will trade the range a bit as the market looks to assess how central banks will act.

Next PMI Release will be Monitored

The analysts think, for those three banks, what they say will be more important than what they do. It was said by Rodrigo Catril, a currency strategist at National Australia Bank. 

Market participants will also highlight the release of Purchasing Managers' Index (PMI) data from China which will be released tomorrow morning. Traders and investors are now assuming China's economy is on the rise after the end of the Zero COVID policy. 

Moreover, the Chinese New Year holiday usually increases economic activity which is positive for global market risk appetite. Consequently, the market may react negatively to high-risk currencies.

It is especially if the data misses expectations. The market will monitor every updates AMD it is hoped not to be disappointed,

Meanwhile, Euro is Rallied 

The euro rallied above $1.09 ahead of this week's European Central Bank (ECB) meeting. That was also after Spanish inflation data which was higher than market expectations. 

In a meeting due on Thursday, the ECB is expected to raise interest rates by 50 bps. Nonetheless, the focus of market participants is on whether the ECB gives signals it will slow the pace of its rate hikes in March.

Earlier on this month, ECB President Christine Lagarde warned that the ECB would continue to raise interest rates. Lagarde may keep them at a certain level for the period.

It is necessary to bring inflation down to the 2% target. Separately, market participants speculate that the Federal Reserve will again slow the pace of its rate hike to 25 bps.

OPEC+ Delegations will Hold a Meeting

OPEC+ delegations will meet next week to review crude oil production levels. It comes with sources from the oil producers group expecting no change to current production policy.

The US Federal Reserve's next decision on interest rates will be made at meetings on January 31 and February 1. That against the background of falling inflation and a faster-than-expected growth of gross domestic product.

That growth is around 2.9% in the fourth quarter based on the data released. This week's 4.2 million-barrel increase also weighed on the market so far.