Aisha Amajida
Aisha has been working with forex industry since 2008. Currently active as independent trader and educator in financial trading and investment.
European bank stocks collapse simultaneously with the Euro, Pound Sterling, and Swiss Franc.
The current position of the US dollar index indicates market uncertainty that could develop into a short-term sideways movement.
The dollar rate plummeted alongside expectations of US interest rates following the collapse of Silicon Valley Bank (SVB) and several other banks last weekend.
Some parties believe that the Silicon Valley Bank crisis occurred due to the aggressive increase of The Fed interest rates.
In his last policy meeting, BoJ Governor Haruhiko Kuroda did not provide any new indications that would have pleased the markets.
The US jobless claims data has raised market concerns before the NFP release tonight, causing the forex market to be sluggish in the Asian session.
On the second day of the testimony, The Fed Chair's remarks were more cautious, causing the dollar to weaken and the market to focus on the upcoming release of US economic data.
Federal Reserve Chair Jerome Powell's testimony not only shook the US dollar but also raised attention to the release of Nonfarm Payrolls data tomorrow.
The statement of Fed Chairman Jerome Powell carries two critical signals that have a bullish impact on the US dollar.
Due to the speech by BoE Governor Andrew Bailey on Wednesday, the effort to rally GBP/USD this week has entirely evaporated by the end of Thursday's New York session.