The US dollar was trading stronger against other G-10 currencies after the Swiss central bank cut interest rates yesterday.
The actions of the country's central bank at the same time created a new market sentiment that the probability of other central banks of the G-10 countries will implement the same monetary policy approach compared to the Fed where it is still seen to maintain interest rates for a longer period.
Among all the G-10 currencies, the Australian Dollar is seen to have traded the weakest compared to other currencies.
The strengthening of the US dollar was also contributed by the weakness of the rival trading currency Chinese Yuan when the country's central bank has implemented a rate cut since February 2024.
The American economic data report that was published yesterday, which is the "housing, manufacturing and labor" data, has shown a significant strengthening of the American economy.
As such, the market now sees the implementation of interest rate cuts will not be implemented hastily by the Fed. Jerome Powell spoke at the recent March 2024 FOMC meeting and stated that the Fed is expected to cut interest rates three times in 2024.
Elsewhere, oil and gold have been trading lower since yesterday as the market now re-evaluates the landscape and pattern of monetary policy implementation by central banks around the world.
