The US dollar's trading performance in the middle of the week began to show a decline after mixed movements were displayed since the opening of the week.
There were no surprises in the United States (US) economic data readings published in the New York session yesterday with the focus on US Gross Domestic Product (GDP) data and the PCE price index which met expectations.
The second reading for US third-quarter growth remained unchanged at 2.8% as per the initial report published last October.
The inflation component that the Federal Reserve (Fed) focuses on also met the forecast to remain at 0.2% in the PCE price index reading for October and the core reading was also unchanged at 0.3%.
The US dollar indicator gave a gloomy indication for the major currency with the dollar index (DXY) having fallen to around 106.00 points while the US 10-year treasury yield has fallen to 4.23%.
The US dollar's decline was also driven by market sentiment that recovered with reports of the Israeli-Hezbollah ceasefire talks.
With the current gloomy situation of the US dollar, major currencies are seen taking the opportunity to restore their respective values.
The situation is likely to continue today (Thursday) when the US market is on holiday in conjunction with Thanksgiving Day.
The euro showed its best increase in 4 months and was also supported by hawkish statements by European Central Bank (ECB) policymakers.
ECB board member Isabel Schnabel said that interest rate cuts should be gradual and shift to neutral, not accommodative.
The Yen currency strengthened significantly, showing its best weekly performance in 3 months driven by expectations that the Bank of Japan (BOJ) will raise interest rates at its December meeting.
The New Zealand dollar in the Asian session yesterday managed to show a positive pattern even though the Reserve Bank of New Zealand (RBNZ) once again acted aggressively by cutting interest rates by 50 basis points, as was also done in October.
The Canadian dollar is also showing a recovery while the US dollar is moving weakly, after experiencing a significant drop in value following Donald Trump's tariff threats against Canada.
