FX.co ★ Dollar Rises as Key Data Eyed

On Monday, the dollar index surged past 98.5, hitting a two-week peak as investors evaluated the US military intervention in Venezuela amidst key US economic data releases this week that could sway Federal Reserve policy. Over the weekend, a US military operation in Venezuela resulted in the capture of President Nicolas Maduro, heightening geopolitical concerns, though market reactions have been relatively muted so far. Investors are now closely watching December's upcoming jobs report on Friday, in addition to JOLTS and ADP employment numbers, ISM PMIs, and the Michigan consumer confidence survey. Currently, markets are anticipating two US interest rate cuts this year, even though the Federal Reserve has only forecasted one. Additionally, President Trump is expected to announce his selection for the next Federal Reserve chair this month, a decision expected to align with his preference for reduced borrowing costs.