The US dollar showed strengthening in Thursday's trading yesterday supported by a hawkish statement by Federal Reserve (Fed) official Christopher Waller who suggested that the central bank should keep interest rates at current levels for a longer period.
The statement was seen in line with the publication of the economic growth data of the United States (US) in the New York session yesterday which saw the final reading for growth in the fourth quarter of 2023 increase to 3.4% compared to expectations to remain at the previous level of 3.2%.
So did home sales data and the consumer confidence survey, which each posted better-than-expected readings for the latest readings.
The US dollar however strengthened in the European session yesterday but failed to maintain the positive momentum in the New York session when the published data was positive.
Currently, market expectations for the Fed's monetary policy are likely to return to the policy tightening being maintained based on the available data and Waller's statement.
The latest indicators will be observed today (Friday) through data on the inflation component, which is the US PCE price index that measures consumer personal spending.
In the New York session as well, investors will evaluate the speech to be delivered by Fed Chairman Jerome Powell who is attending a conference event in San Francisco.
From there, investors are likely to get the latest clues to determine the direction of further movement of the US dollar currency before this week's trading closes.
Commodity markets including crude oil and gold were closed on Friday in conjunction with the Easter Holiday and trading will resume next week.
