Trading in the New York session yesterday Wednesday was turbulent with the focus back on President Donald Trump's threat to remove Federal Reserve (Fed) Chairman Jerome Powell.
Trump, however, denied the matter by claiming that the report by Reuters was not true.
Although considered 'noise' in the market, investors have not ruled out the risk if the matter really happens.
The threat to the central bank is not only seen to undermine the credibility of financial institutions but also threatens the safe-haven status of the US dollar.
Therefore, the US dollar is seen to have failed to maintain the strengthening momentum previously supported by the increase in the US inflation rate for June published in the New York session last Tuesday.
After consumer inflation data was examined, US producer inflation (PPI) data was published in the New York session yesterday, showing a zero figure, lower than the expected 0.2% for June.
The lower-than-expected data reading also disrupted the US dollar's further recovery heading into the end of the week.
In other developments, President Trump announced that his administration is getting closer to reaching an agreement in negotiations with India and also signaled that negotiations can be reached with Europe.
Small countries are likely to be set tariffs between 10% and 15% while Trump has not yet decided on tariffs against Canada.
Investors' focus today (Thursday) is on the Australian jobs report in the Asian session, the UK jobs report in the European session and US retail sales data in the New York session.
