Holdings against the US dollar continued to be released during the European session despite the Federal Reserve (Fed) giving hawkish signals to act more aggressively in the future after raising its interest rates.
In the first move since 2018, the Fed raised its rate to 0.50% and also gave an indication for six more hikes this year to curb high inflation.
However, because investors had placed positions earlier and the Fed's move was in line with expectations, the US dollar traded lower following the decision.
Investors ’focus is now shifting to the Bank of England (BOE) policy meeting to be held tonight, where it is expected to raise rates once again by 25 basis points to 0.75%.
This expectation in turn has pushed the pound currency trading to rise higher, bringing it closer to the price level of 1.3200 against the declining US dollar.
However, investors remained cautious as the BOE had previously given indications to start slowing tightening in their monetary policy after twice raising rates.
In addition, the euro remained stable after benefiting from the depreciation of the US dollar, with investors' attention also targeted at European Central Bank (ECB) president Christine Lagarde's speech at the European session.
On the other hand, the Aussie dollar and kiwi still maintained gains gained from Australian employment data readings and New Zealand’s encouraging economic growth.
The loonie dollar also strengthened, supported by stronger -than -expected Canadian inflation data by rising to a more than 30 -year high in February.
