The US dollar moved weakly following the market's reaction to the results of the FOMC meeting early Thursday morning yesterday which saw interest rates increase by 25 basis points to 5.25%.
However, when resuming trading in the following sessions yesterday, the decline of the US dollar was seen to be quite limited with a somewhat mixed movement towards the publication of the United States (US) NFP employment data report today in the New York session shortly.
Markets got a signal for the Fed to stop raising interest rates when Chairman Jerome Powell indicated that there would be significant changes to monetary policy, although he did not mention it explicitly.
However, Powell's statement that the central bank is still determined to reduce inflation to the target level is seen as still opening up room for policy tightening measures, and this factor limits further depreciation of the US dollar.
Pound Sterling took the opportunity to trade higher to a fresh 11-month high against the US dollar, despite a lack of factors supporting the British currency.
The Bank of England (BOE) policy meeting will be in focus next week in addition to the US inflation data that will also be published.
The price chart of the GBP/USD pair saw a flat price movement on Thursday yesterday following a rise in reaction to the previous FOMC meeting.
Even so, the latest high level was still successfully reached after the price surpassed the high reached last Friday at 1.25800.
Not breaking through the 1.26000 level, the price leveled below that level until it resumed trading in the Asian session this Thursday morning, the level was finally broken through for a new high record.
The target for further price increases is likely to reach 1.27000 or slightly higher.
However, if the price fails to maintain the rising pattern and instead plunges again, the 1.25000 zone is seen to be the focus to be tested.
A break below would signal a bearish signal for investors to prepare for further declines in price, likely heading towards around 1.24000.
