The Reserve Bank of New Zealand (RBNZ) will release its interest rate decision on Wednesday (1am GMT) and is expected to remain on hold.
The EUR/USD has come under pressure ahead of the Federal Open Market Committee (FOMC) minutes due out on Wednesday.
The US-led bombardment on Houthi rebels in Yemen has rekindled worries of a wider conflict in the Middle East that could inflame inflation.
The release of softer UK CPI data has pushed the pound lower and increased Bank of England (BoE) rate-cut expectations.
The US dollar (USD) gained on Thursday after remaining flat on Wednesday.
The GBP/USD price outlook for 2024 is challenging as there are numerous unknowns and uncertainties.
The Australian dollar (AUD) recovered, despite the release of disappointing economic data from Australia on Thursday.
The USD has remained steady against its major rivals and financial markets are moderately quiet as investors await the release of the US inflation data.
The AUD/USD pair has strengthened as market risk sentiment has improved and the dollar has weakened.
All eyes are on the Federal Reserve’s policy decision, and investors will closely watch Chair Jerome Powell’s speech for guidance on further tightening.