US Dollar Set for Strong Weekly Gain
The dollar index rose above 107 on Friday, positioning it for a 1% gain for the week, marking its best weekly performance in a month.
The gains came as markets had priced in a 25 basis point interest rate cut from the Federal Reserve next week, although the outlook for 2025 remains uncertain.
Data released on Thursday showed the headline producer price index rose more than expected, while the core index slowed in line with forecasts.
Additionally, initial jobless claims unexpectedly rose to a nearly two-month high of 242,000, well above the 220,000 anticipated.
Markets are now pricing in a 96% probability that the Fed will implement a quarter-point rate cut at its meeting next week.
The dollar also strengthened against the euro and the Swiss franc following rate cuts from the European Central Bank and the Swiss National Bank on Thursday.
Source: Trading Economics
