Dollar Steady: Strong Data vs. Political Pressure
The US dollar held steady on Thursday (February 12th), after a stronger-than-expected Nonfarm Payrolls (NFP) report prompted market participants to reduce expectations for an imminent Fed interest rate cut. The dollar index (DXY) was seen in the 96.6–96.9 range, with a slight gain of around +0.1% in the early session, reflecting a market response that began to "lock in" a scenario of higher interest rates for longer.
However, the dollar's room for strengthening appears limited as political factors return to the picture. President Donald Trump's statement pushing for lower interest rates signals that pressure on the direction of borrowing costs is not over, despite improving employment data. This condition has led the foreign exchange market to assess that the "interest rate hold" theme remains strong, but the "push for easing" narrative could remain alive through political channels and market expectations.
Next, market participants' focus shifts to inflation data (CPI) and a series of comments from central bank officials to test whether the Fed has a strong reason to hold interest rates longer—or whether it is opening up room for easing in the second half of the year. As long as price data doesn't drop convincingly, the dollar has the potential to remain resilient, but volatility could increase if policy signals change or political tensions flare again.
Source: Newsmaker.id
