The movement of the US dollar currency throughout Thursday yesterday was mixed across trading sessions.
The market continued to digest the dovish signal delivered by Federal Reserve (Fed) Chairman Jerome Powell after the announcement of interest rates being kept unchanged at 5.50%.
Powell indicated the openness of the central bank to implement measures to cut interest rates as early as September if inflation moves down towards the target.
However, the results of the meeting after this will still depend on the latest data to be published with the market's focus now shifting to the United States (US) NFP employment report in the New York session today (Friday).
The US dollar showed strengthening in the European session yesterday, but weakened again at the opening of the New York session before turning strong again towards the end of the session.
Risky market sentiment is seen supporting the US dollar to strengthen, but the Fed's dovish signal at the FOMC meeting puts pressure on the currency king.
Among the other focuses on Thursday yesterday were the results of the central bank of England's policy meeting which met expectations to implement their first interest rate cut.
The Bank of England (BOE0) lowered interest rates by 25 basis points to 5.00% but the vote by MPC members was not far off with 5 voting to cut rates while 4 voting to keep rates.
The central bank realizes that inflation is still difficult to reach the target but they believe it is appropriate to loosen the policy a little to reduce the risk to economic growth.
Market analysts see the BOE as unlikely to be too aggressive in its policy easing and expect cuts of 25 basis points to be implemented every 3 months.
