The dollar is wrapping up the week with solid momentum đ”
The US Dollar Index (DXY) is pushing toward 98, on track for roughly a 1% weekly gain as strong US data and firm Fed messaging boost sentiment.
Fresh numbers show:
âą Jobless claims fell to a five-week low
âą Philly Fed outlook jumped to a five-month high
âą But trade deficit widened and pending home sales slipped
Markets are now eyeing advance Q4 GDP and the PCE inflation report â the Fedâs preferred gauge â for the next directional cue.
Minutes from the latest Federal Open Market Committee meeting revealed a split on rates, with some officials open to further hikes if inflation stays sticky. Meanwhile, traders have dialed back aggressive easing bets but still expect two 25bps cuts before year-end.
For now, the dollar remains supported by resilient growth and cautious Fed signals.