Dollar Edges Higher on Friday But is Still On Track For Weekly Decline
The dollar index rose slightly to 109.1 on Friday but remains on track for a 0.8% decline this week, snapping a six-week winning streak.
Despite strong economic data highlighting the resilience of the US economy, investors found some relief in signals that the Fed may still have room to ease borrowing costs. A surprising slowdown in the annual core inflation rate, alongside softer-than-expected PPI and retail sales figures, fuelled these expectations. Nevertheless, the greenback hovers near November 2022 highs, as markets price about 43bpd of rate cuts rate this year.
Traders are now turning their attention to Donald Trump’s inauguration for clues on policy shifts under the incoming administration. The dollar saw its strongest gains against the British pound, the Australian dollar, and the Japanese yen.
Source: Trading Economics