The dollar strengthened against other currencies recently, rising in price slightly even amid weak macroeconomic data in the EU and recovery in the US economy.

However, strategists in Wells Fargo say that dollar is "trading in a flat," and that "positions are incredibly stretched, so another pullback is needed to move up another notch."

Hence, the upcoming speech of Fed chairman Jerome Powell on monetary policy this Thursday is expected to be main driver of growth for the US dollar, with which investors will observe closely, awaiting presumptive signs of a mid-level inflation target, which will allow inflation to rise before the Fed raises rates to offset decades of favorable price increases.

"If Powell does not announce that we are targeting average inflation, then the dollar should strengthen, and, accordingly, some pullback in foreign currencies," said Erik Nelson, Macro Strategist at Wells Fargo.

Meanwhile, Republicans say that the US' politics and economic prospects depend only on the re-election of Donald Trump.

On Monday, analysts at NatWest Markets said in a report that when Trump is re-elected, his administration will be able to realize economic recovery, even after its collapse during the pandemic under the sensitive and firm leadership of Donald Trump.

In addition, the upcoming speech by Fed chairman Powell may "revive" and raise the price of gold, as strategists at TD Securities believe that on the upcoming speech, the Fed will announce its adoption of average inflation targeting, which will lead to new buying interest that could raise demand for gold and silver.