The US dollar managed to rise to show a positive recovery on Wednesday's trading yesterday after experiencing continuous pressure since the end of last week following the decision to cut aggressive interest rates by the Federal Reserve (Fed).
New home sales data in the United States (US) published in the New York session yesterday also provided support for the strengthening of the US dollar with a better number reading compared to forecast figures.
Even though the king of the currency has again shown an increase in value, investors still remain cautious expecting continued risks to it going forward.
This follows the market still placing expectations that interest rate cuts will continue by the Fed at the remaining meeting at the end of 2024.
Following the views of several Fed members who previously supported the extension of policy easing, Fed Governor Adriana Kugler yesterday expressed her strong support for the Fed to cut interest rates by another 50 basis points.
Kugler sees that the move is appropriate if inflation continues to decline towards the target as expected.
However, the monetary policy decision as previously informed by Fed Chairman Jerome Powell will depend on the latest data to be published.
The focus in the New York session tonight (Thursday) will be on the final reading for US economic growth (GDP) for the second quarter of 2024.
After the updated reading rose earlier, the forecast for the latest figure is to remain unchanged at 3.0%.
Next, the focus will shift to a speech by Jerome Powell who is attending a conference in New York with investors expecting the latest indication he will deliver on monetary policy.
In addition to Powell, statements by several other FOMC members will also steal the attention of those attending other conference events.
