USD Stops Rising, Some Are Awaiting the New York Session!

<p>&nbsp;The greenback remained strong against major currencies although gains were limited in the European session.</p><p><br /></p><p>Strong US economic growth data on Thursday gave the US dollar a boost to erase the losses it suffered following the Federal Reserve's (Fed) decision.</p><p><br /></p><p>The US economy grew strongly at an annual rate of 2.4% in the second quarter and jobless claims also recorded a lower-than-expected decline.</p><p><br /></p><p>This supports Fed Chairman Jerome Powell's statement that the US may be able to avoid a recession and gives the central bank an opportunity to continue raising interest rates.</p><p><br /></p><p>At the time of writing, the dollar index, which measures the greenback's strength, was trading higher at around 101.90 against a basket of major currencies.</p><p><br /></p><p>The release of US personal consumer expenditure (PCE) data, the Fed's preferred key inflation indicator for rate setting, will be the next for investors tonight.</p><p><br /></p><p><br /></p><p>Meanwhile, the yen currency continues to display volatile movements following today's Bank of Japan (BOJ) policy announcement.</p><p><br /></p><p>Although the BOJ did not make changes in the yield control curve (YCC), it promised greater flexibility in its target range.</p><p><br /></p><p>The 10-year Japanese government bond (JGB) yield jumped to 0.575% for the first time since 2014, while the yen oscillated between a gain of over 1% and a loss of 1.2% against the USD.</p><p><br /></p><p>The euro, meanwhile, remained weak following its earlier fall after the European Central Bank (ECB) meeting which offered no guidance for future interest rates.</p><p><br /></p><p>Investors are now looking forward to German inflation data in the European session for the next ECB interest rate hike.</p><p><br /></p><p>On the other hand, the Aussie, New Zealand and Canadian dollar commodity-related currencies remained traded lower than the greenback.</p>