Dollar Set for Weekly Advance
The US dollar index climbed toward 98 on Friday, on track for a nearly 1% weekly gain, as investors responded to fresh tariff announcements and evolving monetary policy signals.
President Trump ramped up trade tensions throughout the week, unveiling a 35% tariff on Canadian imports starting August 1 and signaling 15% to 20% blanket tariffs on most other trading partners. Earlier in the week, the administration also announced 50% duties on copper imports and Brazilian goods, all set to take effect on the same date.
On the monetary policy front, Chicago Fed's Goolsbee pushed back against the idea of rate cuts to ease government debt burdens, emphasizing that the Federal Reserve’s dual mandate remains focused on employment and price stability.
Meanwhile, the latest weekly jobless claims data continued to point to a labor market that remains solid but is showing signs of cooling. The dollar posted its strongest gain against the yen this week, while also advancing sharply against the euro.
Source: Trading Economics
