Dollar Firms Up as Traders Reassess Fed Outlook
The dollar index steadied around 97.4 on Friday after rising for two straight sessions, as the Federal Reserve signaled a less dovish policy stance than markets had anticipated.
Earlier in the week, the Fed delivered a widely expected quarter-point cut and projected two more reductions this year, while indicating just one cut in 2026. Fed Chair Jerome Powell framed the move as a risk management step amid a slowing labor market, stressing there was no need to rush easing. The greenback also found support after data showed new jobless claims fell last week, reversing the prior week’s spike.
Elsewhere, the Bank of Canada cut rates while the Bank of England left policy unchanged. The dollar index is on track to finish the week little changed, erasing most of the losses from earlier in the period.
Source : Tradingeconomics.com
