USD Back Down, New York Session Expected to be More Aggressive!


 The US dollar pulled back from earlier gains, seeing it trade lower in the European session today.

Even so, concerns about the global banking crisis are seen lingering in the market where safe-haven currencies continue to trade stronger.

Markets are now turning their attention to the European Central Bank's (ECB) policy meeting which will take place tonight, with expectations that it will raise rates by 50 basis points.

However, investors should remain wary of any possibility that the ECB will surprise the market with a smaller hike due to the current crisis affecting global banks.

In the European session, the euro traded slightly higher, but prices still failed to erase all the losses recorded on Wednesday.

The pound currency recorded a modest increase but managed to erase some of its previous decline.

Meanwhile, the dollar index, which measures the greenback's strength against six major currencies, declined 0.4% to 104.26.

The US jobless claims data in the New York session will also be the focus of investors who are still looking for clues to the direction of the Federal Reserve (Fed) policy.

The yen remained strong at around 4-week highs against the US dollar, euro and pound, and the strongest in 2 months against the Aussie dollar and kiwi.

Additionally, the Aussie dollar received support from a stronger reading in Australian jobs data, helping it recover some of its earlier losses.

The kiwi dollar, meanwhile, remains stuck around record lows as New Zealand's economic growth contracted in the fourth quarter, fueling investor expectations that the central bank will ease its tightening.