FX.co ★ Dollar Heads for 3rd Weekly Gain

The dollar index remained stable around 99.3 on Friday, set for its third consecutive weekly increase. This stability follows robust US economic data that has lessened the likelihood of further interest rate cuts by the Federal Reserve. Last week’s jobless claims fell significantly below expectations, highlighting a strong labor market. Additionally, certain manufacturing surveys surpassed projections. Several Federal Reserve officials pointed to signs of labor market stability and warned of potential inflation risks. Currently, the market largely expects that the Federal Reserve will maintain current interest rates at its upcoming meeting, with projections for the next rate cut now delayed until June or later. In trade developments, the US agreed to reduce tariffs on Taiwanese goods from 20% to 15%. In return, Taiwanese companies have pledged to invest at least $250 billion to boost chip manufacturing capacity in the US. Meanwhile, President Trump suggested he might postpone any immediate action in Iran but reaffirmed his interest in acquiring Greenland.