The US dollar continues to maintain the strengthening momentum it achieved after the Federal Reserve (Fed) decision, as investors' focus now shifts to the Bank of England (BOE) policy meeting.
Although interest rates are unchanged, Fed Chairman Jerome Powell has hinted that there will be another hike this year and that rates will remain high until 2024.
This caused the US dollar to continue to strengthen in line with the 10-year US treasury yield which strengthened to the highest level since 2007 at 4.4%.
Tonight's data focus will be on the weekly US jobless claims report and the Philly Fed manufacturing index.
At 7pm shortly, the BOE will decide whether to raise interest rates or keep them unchanged amid a weakening UK economy.
The pound remained trading weaker, hovering around five-month lows against the greenback ahead of the decision.
Meanwhile, the Swiss franc weakened significantly after the Swiss National Bank (SNB) kept interest rates at 1.75%, thus disappointing market expectations for a 25 basis point hike.
Meanwhile, the yen is also the focus of investors after it plunged to its latest 10-month low of 148.46 against the greenback.
Investors are now expecting intervention from the Bank of Japan (BOJ) which will meet tomorrow (Friday) to curb the yen's deeper fall.
The euro tried to bounce back in the European session, but still weakened around six-month lows against the US dollar.
On the other hand, the Aussie dollar and kiwi remained traded lower, even after New Zealand's gross domestic product (GDP) data showed stronger expansion in the second quarter.
In addition, the Canadian dollar continued to trade gloomy following a further retreat in crude oil prices from the 10-month highs they hit on Tuesday.
