The US dollar strengthened and doubled in trading yesterday Wednesday when influenced by several factors that are the focus of the market this week.
In the New York session yesterday, ADP data measuring private employment in the United States (US) recorded a strong increase of 104,000 in July, giving a positive signal ahead of the upcoming NFP employment report.
US economic growth data for the second quarter of 2025 was also published, which surprised investors.
The first reading published was 3.0%, surpassing the 2.5% forecast, thus showing very good growth compared to the -0.5% contraction in the previous quarter.
This is a positive sign for the US economy when concerns were previously pressured by the uncertainty of tariffs implemented by President Donald Trump.
The strengthening of the US dollar at the beginning of the New York session did not stop there when the decision of the subsequent FOMC meeting injected a 'booster' into the king of currencies.
Looking at the latest FOMC meeting results early this morning, the interest rate was forecast to remain at 4.50%.
Fed Chairman Jerome Powell maintained a cautious tone with the uncertainty hitting the global market at the moment, but stated that the American economy is still strong and resilient.
Expectations for further interest rate cuts, Powell informed that they have not yet made a decision for the September meeting.
Also in focus yesterday was the Bank of Canada (BOC) policy meeting result which maintained interest rates at 2.75%.
Today (Thursday), the Bank of Japan (BOJ) policy meeting will take place in the Asian session with interest rates expected to be maintained at 0.50%.
For the US dollar, PCE price index data will drive the movement in the New York session tonight before attention will turn to the NFP employment report on Friday.
