US Dollar stable near 1-week low as central banks remain in focus

   •  USD stalls post-FOMC downfall. 
   •  Focus shifts to BOE, ECB decisions. 
   •  US macro data might provide some trading impetus. 

The post-Fed greenback selling now seems to have abated, with the key US Dollar Index now trying to stabilize just above one-week lows touched yesterday. 

In a widely expected move, the Fed raised interest rates by 25 basis points, for the third time this year, to 1.50% at the conclusion of its policy meeting on Wednesday. The central bank, however, indicated that inflation might continue to remain sluggish and dampened prospects for any aggressive monetary policy tightening cycle in 2018.

With investors still digesting overnight downbeat inflation outlook, the latest development over the long-awaited US tax reform plan helped limit further losses, at least for the time being. The Congressional Republicans reached a deal on the final tax legislation and now seems to have cleared the way for a final vote next week, which would provide fresh impetus for the buck's next leg of directional move.

Investors now shift their focus to the outcome of BOE and ECB monetary policy decision, due to be announced in a short while from now. Both the central banks are widely expected to stand pat and could turn out to be a non-event for the markets.

Today's US economic docket, highlighting the release of monthly retail sales and initial jobless claims, might influence the USD price dynamics later during the early NA session.