Dollar Heads for 2nd Weekly Gain
The US dollar trimmed some losses to around 98.4 on Friday after the University of Michigan’s consumer sentiment index rose to 61.8 in July, marking a five-month high and beating expectations. The data added to signs of economic resilience, reinforcing the view that the Federal Reserve can afford to delay interest rate cuts.
Earlier this week, stronger-than-expected retail sales and a drop in jobless claims to a three-month low also supported the dollar. Fed Governor Adriana Kugler backed holding rates steady for “some time,” while others, like Governor Waller and San Francisco Fed’s Daly, still anticipate cuts later this year.
Meanwhile, President Trump reassured markets that he won’t fire Fed Chair Jerome Powell, though he continues to criticize the pace of rate cuts. Overall, the dollar is set to gain 0.6% this week, marking its second consecutive weekly advance and the first such streak since May.
Source: Trading Economics
