The recent synchrony in monetary policy adjustments by the Federal Reserve and the Bank of England marks a significant juncture for global markets. Both central banks have lowered their key interest rates by 25 basis points, bringing the Fed's rate to the 4.50%-4.75% range and the BoE's rate to 4.75%. These moves signal a concerted effort to stimulate economic activity amid broadening disinflation trend.

Traditionally, interest rate cuts can lead to a weaker currency due to lower returns on investments denominated in that currency. However, the US Dollar is exhibiting resilience, ticking higher as we enter the US trading session. The reason for this is that the rate cut was widely anticipated and have already been priced into the currency markets, mitigating any negative impact on the Dollar.

Chairman Powell's assertive response to questions about potential political pressures underscores the Fed's dedication to its dual mandate of maximum employment and price stability, independent of political influences. His stance provides reassurance to the markets that monetary policy will remain focused on economic indicators rather than political agendas.

Talking about technical picture of Dollar index on daily timeframe, the price found strong support at 104.50 level before the weekend close, which skews risks to the upside for dollar price action next week as profit-taking move after the extreme rise seems to be completed and market braces for a next leg higher:

The upcoming release of the University of Michigan's preliminary November report is poised to shed light on consumer sentiment and inflation expectations. Consumer Sentiment Index is expected to show slight uptick to 71 from 70.5 suggesting marginal improvement in consumer confidence, which could positively influence consumer spending—a key driver of economic growth. With no consensus on inflation expectations, market participants will closely scrutinize this data point.

European equities are experiencing a downturn, with losses approaching 1% intraday. US futures also indicate a cautious market sentiment ahead of the opening bell.

The Pound Sterling's depreciation against the US Dollar, trading below the critical 1.3000 level, reflects lack of surprise in the BoE’s policy decision. Governor Bailey's comments on the anticipated boost from fiscal measures highlight a nuanced economic outlook for the UK, balancing the benefits of increased government spending against the headwinds of higher taxes.

Nevertheless, technical picture of GBPUSD suggests that price extends consolidation near the key support trendline with multiple attempts for a break lower. Decisive move lower will likely trigger cascade of sales with a possible short-term target near 1.28 level where 200-SMA currently resides: