It was a surprise at yesterday's New York trading session when the economic data of the United States (US), which is the focus of the central bank, came with a reading that was far from forecast.
The preliminary reading for US Gross Domestic Product (GDP) for the first quarter of 2024 recorded growth at a rate of 1.6%, missing expectations of 2.5%.
This has given rise to mixed speculation and also influenced the significant movement of the US dollar currency yesterday.
Is this a sign that the world's largest economy has been increasingly affected by the strict policy maintained before and is showing signs of heading towards recession?
This will also cause concern for the global market and tempus to other giant economies.
At the beginning of the New York session, the US dollar showed initial strengthening but after the data was published until the end of the session, the king of the currency weakened again.
Market trends are seen to shift back towards expectations for policy easing measures by the Federal Reserve (Fed).
The next indicator that the Fed will watch at the New York trading session, which is the last session of the week, is the PCE price index data that measures the personal spending of consumers in America.
This is the component of inflation that the Fed evaluates in its policy setting and often has a big impact on the market when it is published.
The market today (Friday) is also watching the results of the Bank of Japan (BOJ) meeting in the Asian session to monitor the indication from governor Kazuo Ueda regarding any intervention measures.
The yen remained hovering at a 34-year low against the US dollar, a level not seen since 1990.
