The US dollar continued to highlight its positive performance on Thursday when it strengthened to reach a new 2-year high for the first trading day of 2025.
Supporting the strengthening of the US dollar in the New York session yesterday, the US unemployment benefit claims data for the previous week recorded a lower figure than expected.
As expected by analysts, despite showing a gloomy movement at the end of 2024, the US dollar will strengthen again at the beginning of this year.
This is following the indications from the FOMC meeting last December when the interest rate was cut by 25 basis points to 4.50%.
Federal Reserve (Fed) Chairman Jerome Powell has delivered a statement with a cautious tone for their policy easing measures.
Interest rates are expected to be cut by only 50 basis points this year with two cuts.
Cautious actions that will keep interest rates in America at a high level will give an advantage to US dollar trading.
Asian currencies are seen holding up but European currencies are starting to show signs of weakness from the initial strengthening pressure of the US dollar.
The pound fell to a fresh 8-month low while the euro plunged to a 3-year low.
In the New York session tonight, the ISM US manufacturing PMI data will be published for assessment for December.
The reading would be better if it breaks the 50-point mark which indicates expansion in the sector, adding support for the US dollar at the end of this week.
