Dollar Steady, Pound Under Pressure
The US dollar held steady during Thursday's trading (July 30) after recording its largest daily drop in two weeks. The dollar index had previously fallen 0.3% after the Federal Reserve kept interest rates unchanged, sparking concerns that inflationary pressures remain not fully under control.
Investors are now awaiting data on US second-quarter economic growth and June PCE inflation. Both sets of data will provide key clues regarding the direction of Fed policy at its next meeting.
The pound weakened by up to 0.3% to around 1.3333 ahead of the Bank of England's decision. The UK central bank is expected to maintain interest rates, while the market will closely watch the vote split and comments regarding the inflation outlook.
The USD/JPY pair rose slightly to around 163.74 after Japan lowered its economic growth forecast. Meanwhile, the EUR/USD pair edged down to 1.1453, even though the Eurozone economy grew more strongly than expected in the second quarter.
Source: Newsmaker.id