FX.co ★ Dollar to End the Week Higher

The dollar index dipped slightly below 98 on Friday, yet remained close to the two-week high it touched earlier this week, and is set to end the first week of February with an increase of nearly 0.9%. Throughout the week, the US dollar benefited from its status as a safe-haven currency, especially on Thursday. That day, weaker-than-anticipated US labor data sparked economic health concerns, which, coupled with a tech sector decline and a sharp drop in cryptocurrency values, drove investors towards safer assets. Investor sentiment improved on Friday, following a rally in tech stocks and preliminary data showing an unexpected rise in the University of Michigan's consumer sentiment index to a six-month peak. Looking forward, market participants will focus on the upcoming delayed US jobs report and the CPI release for further insights into the Federal Reserve's monetary policy stance. Currently, the market anticipates approximately 58 basis points of Fed rate cuts this year, up from about 50 basis points projected earlier in the week. The dollar saw particular weakness against the pound and the Australian dollar.