Although the movement displayed is not very significant, but the US dollar showed a decrease due to the effect of the market's reaction to the FOMC meeting which is the main focus this week.
As expected, the Federal Reserve (Fed) kept interest rates unchanged at 5.50%, but what investors are more focused on is the follow-up speech by Fed Chairman Jerome Powell.
In line with the predictions of the majority of analysts, Powell maintained a 'dovish' tone in his statement early this morning by signaling for interest rate cuts to be implemented in September.
According to him, 'cut rates' is an option to be done as early as September if the inflation rate moves on track as expected.
However, Powell added, the central bank will make a decision depending on the latest data to be published including inflation, employment and economic growth.
Second quarter economic growth in the United States (US) showed a good reading last week, while employment data will be refined this week.
The ADP jobs data report in yesterday's New York session recorded a slower-than-expected increase for the private sector which gave an early warning for Friday's NFP report.
While the market will continue to digest the results of the FOMC meeting, do not forget the focus of European investors to observe the policy meeting of the central bank of England today.
The Bank of England (BOE) is expected to lower interest rates by 25 basis points to 5.00% which is seen to put pressure on the Pound currency.
Meanwhile, the Yen currency showed continuous strengthening for several sessions until the Asian session this morning, after the Bank of Japan (BO) at yesterday's meeting raised their interest rates and announced measures to reduce bond purchases (tapering).
