The forex market opens the week with a strong bullish tone on the US Dollar, driven by expectations of prolonged higher interest rates. Investors remain cautious as inflation concerns persist, reinforcing the idea that the Federal Reserve may maintain a tighter monetary policy for longer.

Major currency pairs like EUR/USD and GBP/USD are already showing downside pressure, reflecting the strength of the dollar. Traders are now focusing on upcoming economic releases, as any surprise data could significantly shift short-term market direction.