Heading into the weekend and the end of October, the market has been looking at the monetary policy decisions of several different central banks.
The Bank of Canada (BOC) on Wednesday continued its action to further reduce interest rates to 2.25% from a 2.50% reduction from the previous September meeting.
The Federal Reserve (Fed) followed suit early Thursday morning yesterday, fulfilling expectations to continue easing their monetary policy.
The FOMC meeting for October met market expectations with a 25 basis point cut in interest rates to 4.00%, while Fed Chairman Jerome Powell still maintained a cautious tone for further policy projections.
No guarantee of further cuts in December is a factor supporting the initial recovery in US dollar trading at the end of this week.
The Bank of Japan (BOJ) in the Asian session yesterday delivered a less hawkish tone after announcing that interest rates remained unchanged at 0.50%.
Governor Kazuo Ueda gave a strong signal that a rate hike will be implemented at the December meeting.
The yen, however, traded weakly throughout Thursday while the US dollar performed well.
In the New York session yesterday, attention was focused on the European Central Bank (ECB) which announced that interest rates would remain at 2.15% for the third consecutive meeting.
The European central bank sees its current monetary policy as being on track with President Christine Lagarde expressing openness to easing policy if the impact of tariffs affects the global economy.
For today (Friday), China's manufacturing and services PMI data will be watched in the Asian session while in the final session of the week, Canadian economic growth data will be in focus.
