FX.co ★ Dollar Heads for 2nd Weekly Gain

The US dollar dipped slightly to 98.4 on Friday, yet it remains poised for a second consecutive week of gains, buoyed by investor optimism regarding the US economy's strength. Thursday's data indicated a stronger-than-anticipated rebound in retail sales for June, alongside a surprising decline in weekly initial jobless claims to the lowest level in three months. These figures imply a robust economic outlook despite the challenges posed by President Donald Trump's tariffs and provide the Federal Reserve with leeway to defer rate cuts. Fed Governor Adriana Kugler reinforced this stance on Thursday, suggesting that maintaining steady rates for an extended period would be appropriate. Conversely, San Francisco Fed President Mary Daly upheld her forecast for two rate cuts within the year. President Trump further reassured investors by confirming he does not intend to dismiss Fed Chair Jerome Powell, although he reiterated his criticism of Powell for not reducing rates sooner. The dollar has risen by 0.6% this week, positioning it for a second consecutive weekly gain, something not observed since May.