The dollar index rose 0.12% to 93.95, and the yield on the 10-year US Treasury fell for the third consecutive day; previous data showed that US consumer confidence unexpectedly increased in October. Analysts said that the U.S. dollar may remain stable until a series of central bank meetings and economic data are released. These meetings and data may change people's views on interest rates, inflation and growth rates.

The euro fell 0.1% against the US dollar to 1.1596. The euro has recently weakened due to expectations that the European Central Bank will adopt a dovish stance at the meeting. There was news on Tuesday that bond investors’ inflation expectations for the euro zone had reached a seven-year high of more than 2.07%.

The British pound, Australian dollar and Japanese yen fluctuated greatly. The pound once touched more than $1.38 after British retailers announced stronger-than-expected sales in October, confirming the prospect of rising interest rates. The pound subsequently fell back and was flat at $1.3764 that day. The euro against the pound hit its lowest since February 2020. Valentin Marinov, head of G-10 foreign exchange strategy at Crédit Agricole Bank: Although there are concerns about possible stagflation, due to favorable spreads and global risk sentiment is still generally optimistic, it seems that not many customers hold short positions in the pound.

The U.S. dollar rose 0.4% against the yen to 114.16, lower than the four-year high of 114.695 hit last week; the Bank of Japan is expected to maintain its large-scale stimulus plan when it meets on Thursday and revise its inflation expectations for this year, indicating that it has no intentions. Follow the policies of other central banks preparing to exit the crisis mode.

The Canadian dollar rose slightly, and the intraday trend was fluctuating. The Bank of Canada will meet on Wednesday, and it is expected that the Bank of Canada will continue to withdraw support for the economy, paving the way for a rate hike next year amid inflation concerns. The Bank of Canada will raise inflation expectations and to a large extent end the stimulus measures for bond purchases during the epidemic. TD Securities strategist Andrew Kelvin wrote in a research report that concerns about stagflation benefit the Canadian dollar, making it the most overbought currency among G-10 currencies.

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