After displaying a gradual recovery pattern that began last Wednesday, the US dollar was seen continuing its clear strengthening in trading on Thursday.
The situation was also driven by the latest United States (US) economic data readings with the surprise figures published.
The US economic growth report in the New York session yesterday showed the final reading for Gross Domestic Product (GDP) for the second quarter was 3.8%, higher than the forecast to remain the same as the previous reading at 3.3%.
The strong economic data has slightly reduced the pressure before when the Federal Reserve (Fed) resumed easing their policy with the first interest rate cut this year at the September meeting.
Perhaps this will be the best situation for the US dollar before the pressure is expected to return with the expectation of further interest rate cuts at the remaining meetings at the end of 2025.
The US dollar strengthened significantly in the New York session yesterday, but investors expect cautious movements for these latest sessions.
This is because the focus will be on the next indicator, the PCE price index report which measures US personal consumption expenditures for August reading.
This data is the Fed's favorite inflation indicator in measuring price stability in the economy as well as influencing monetary policy decisions.
