Dollar Surges Ahead of Central Bank Week

The US Dollar is gaining momentum as markets prepare for a crucial week of central bank decisions. Key events include the Consumer Price Index in Canada on Monday, the Claimant Count Change in the UK on Tuesday, and the FOMC Interest Rate Decision in the US on Wednesday.

Markets are increasingly expecting the Federal Reserve to hike interest rates from 3.75% to 4.0%, which is contributing to the Dollar's strength. This has led to a weakening of stocks, as higher rate expectations weigh on risk appetite.

The AUDUSD is approaching the key level of 0.7130 and could break below it, signaling further risk-off pressure. Gold and Silver remain relatively flat despite the stronger Dollar, but safe-haven demand could provide additional support if risk sentiment continues to deteriorate.