Steady Dollar and Global Market Movements Amid US Economic Signals
The dollar held steady against major currencies, with investors focusing on upcoming U.S. consumer spending data following strong economic growth figures. Market reactions remained muted despite new U.S. tariffs, as exemptions and bilateral trade deals eased fears. The Fed’s future rate cuts are now under scrutiny amid inflation concerns.
The dollar remained steady against the euro and sterling on Friday, as investors awaited U.S. consumer spending data following unexpected growth figures. With the euro near a three-week low and sterling flat after a recent dip, focus is now on the Federal Reserve's response to economic signals.
The yen hit an eight-week low after President Trump announced new tariffs, though hopes for exemptions tempered the currency reaction. Analysts noted that European pharma shares held firm as U.S. exemptions for local manufacturing lessened the impact, with the market treating new tariffs as a negotiation tactic.
The dollar index poised for its largest weekly climb in two months, following strong U.S. growth and economic data. The market's attention now shifts to the Fed's rate decisions and the expectation of inflation reports, guiding future monetary policy amid talks of gradual rate eases.
(With inputs from agencies.)
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