While the market is still digesting the situation of Donald Trump's victory in the 2024 presidential election event in the United States (US), the focus at the end of the week began to shift to the monetary policy of the central bank.
After being awaited by investors, the outcome of the FOMC meeting for the November edition was finally answered by meeting the majority's forecast which is a cut in interest rates by 25 basis points, down from 5.00% to 4.75%.
The Federal Reserve (Fed) is seen to continue further easing monetary policy, but as expected to implement smaller cuts compared to the more aggressive one last September.
The US dollar was seen to show no aggressive movement when the interest rate decision was announced after already showing a significant decline.
In contrast to last Wednesday's trading, the US dollar's performance on Thursday was more gloomy, reducing the gains made as investors are likely to be cautious ahead of the FOMC meeting results.
The US dollar showed no significant reaction after the meeting as investors saw Fed Chairman Jerome Powell fail to give a clear indication of the central bank's future direction.
However, Powell noted that there are no signs that the Fed is considering stopping interest rate cuts in the near term.
Powell also said the presidential election will not affect Fed policy in the near term.
At the beginning of the previous New York session, the focus was first on the results of the Bank of England (BOE) policy meeting which also saw interest rates lowered by 25 basis points to 4.75%.
Nevertheless, the Pound managed to display an excellent daily trading performance against the US dollar following a follow-up statement by BOE Governor Andrew Bailey with a more cautious tone.
Bailey emphasized the inflationary situation that needs to be ensured to reach the target, therefore interest rates cannot be lowered too quickly and too much.
Investors remain cautious in assessing the movement of major currencies at the end of the week with the market atmosphere still uncertain and risky.
