The US dollar remained under pressure during the trading sessions at the end of last week, but the pattern of falling value was seen as modest.
Indicators on current data such as employment and economic growth still show good economic activity in the United States (US), but the Federal Reserve (Fed) at the latest FOMC meeting last week has decided on a rather aggressive policy easing.
An interest rate cut of 50 basis points became an option after the move was the first to be implemented after a period of more than 4 years.
For the foreseeable future, the US dollar can be expected to move weakly after the Fed switches to their policy easing policy.
The market expects there to be several more follow-up rate cuts for the remaining meetings until the end of 2024, but Fed Chairman Jerome Powell stated that decisions will be made from one meeting to another based on the latest data.
The US dollar moved weak against most other major currencies except the Yen.
The yen weakened after reaction to the Bank of Japan's (BOJ) policy meeting last Friday, supporting the US dollar to strengthen to a 2-week high against the rising sun's currency.
The BOJ kept interest rates unchanged at 0.25% and signaled that they are in no rush to raise their interest rates further.
This year, the BOJ has raised the interest rate twice to 0.25% from the -0.10% level that had been maintained for a long time before that.
Two meetings will be in focus this week involving the Reserve Bank of Australia (RBA) and the Swiss National Bank (SNB).
While several important economies will be watched throughout the week including European and US PMI data, Australian inflation data, US GDP data and also the US PCE price index.
