Powell signaled an interest rate hike would not happen at the June meeting
USD weakens, analysts expect it to strengthen in the near term
If the strengthening continues, the BOJ refuses to give any comments
Analysts are of the view that the US dollar has the potential to strengthen in the near term after getting a clear signal from the FOMC meeting that the Federal Reserve (Fed) will maintain a tighter policy for longer.
The Fed has kept interest rates unchanged and Fed Chairman Jerome Powell indicated the possibility of no rate hike at the next meeting.
In addition, the announced quantitative tightening measures are also seen as an effort by the central bank to achieve the 2% inflation target.
The US dollar reacted negatively after the results of the meeting but managed to show strengthening in the European session yesterday.
However, the currency king returned to a dismal performance in the following session as the focus turned to key economic data to be published today before the week's trading ends.
Today's focus is on the United States (US) NFP jobs data report for April after an encouraging reading in the previous month.
Also to be published in the same session is the ISM survey data for the US service sector which is expected to remain above the 50 point level.
In other developments, the market is also awaiting any explanation from the Japanese authorities regarding the intervention measures that have taken place.
The yen recovered by strengthening from a 34-year low, but Japan's central bank declined to comment at this time.
