The US dollar was inching higher after the Federal Reserve’s meeting yesterday.
Following the comments of the Fed chairman, the expectations of an interest rate cut in March have retreated as a start in policy easing in May becomes more likely.
As a result, the dollar could find more strength against other major currencies in the meantime. However, the currency could still react to new PMI data today and NFP report data tomorrow.
The USD’s strength weighed on the British Pound’s performance which could remain under some pressure ahead of the meeting of the Bank of England today.
The latter is expected to leave its interest rates unchanged as well, while inflation in the UK remains elevated. However, the country continues to see difficult economic conditions which could impact the central bank’s next steps in monetary policy, leaving the GBP at risk.
