The ECB and BOE gave less encouraging indications
US jobless claims are positive
US NFP employment data is now in focus
The US dollar bounced back to recover most of the losses recorded following the Federal Reserve (Fed) decision with market focus now directed to the publication of the US NFP employment data.
The dollar index, which measures the greenback's strength against a basket of major currencies, edged higher from its 9-month low to trade at 101.85 during the Asian session.
This rise may also be influenced by the US jobless claims data which showed a reduction last week, indirectly signaling better for the NFP data.
The US economy is expected to add 193,000 jobs in January, down from 223,000 jobs recorded previously, while the unemployment rate rose to 3.6%.
Meanwhile, the pound slipped lower after the Bank of England (BOE) met market expectations to raise rates by 50 basis points to 4.00%.
In a follow-up statement by Governor Andrew Bailey, he no longer mentioned the word "by force" in his guidance, instead stating that "if there is evidence of more sustained pressure, further tightening of policy will be required".
This indirectly made investors interpret it as a sign that the BOE might stop (pause) its tightening.
In addition, the euro also declined following the European Central Bank's (BOE) decision to increase rates by 50 basis points to 3.00%.
President Christine Lagarde hinted that the central bank may raise interest rates by another 50 basis points in March, but she said further decisions would depend on incoming data.
Despite being seen as hawkish, euro trades failed to capitalize on it by erasing the gains made following the Fed decision.
