Investors are turning their attention to the US dollar and long-term bond yields due to important economic data from the United States to be announced this week. The US Dollar Index (DXY) is nearing the 106 level, and the yield on the 10-year US government bonds has rapidly increased by 4.86%.

Investors are awaiting remarks from Federal Reserve Chairman Jerome Powell, scheduled for Wednesday, with expectations that he will address the need to sustain these elevated interest rates for a longer duration to ensure price stability. However, there is also a chance of a more hawkish policy stance in the future if the US economy remains robust.

Additionally, there is a watchful eye on the US PMI (Purchasing Managers' Index) for October, with the manufacturing PMI estimated to have fallen to 49.5, and the services PMI slightly below the 50.0 threshold at 49.9.

As for the Canadian dollar, investors are awaiting the decision on interest rates from the Bank of Canada (BoC), scheduled for Wednesday, with expectations that the BoC will keep interest rates at 5% due to the less-than-robust Canadian economy amidst fragile growth prospects.