FX.co ★ Dollar Set for Third Weekly Rise

The US dollar index advanced towards 101 on Friday, set for its third straight weekly increase, driven by enhanced global trade optimism and diminishing expectations for immediate rate reductions. This upward movement was partly influenced by President Donald Trump's announcement of a preliminary trade agreement with the UK, the first since the US introduced significant tariffs last month. Trump also indicated the possibility of additional agreements and alluded to a potential reduction in tariffs on China, contingent on the results of upcoming trade discussions in Switzerland. On the monetary policy side, Federal Reserve Chair Jerome Powell rejected the notion of a proactive rate cut in anticipation of potential economic repercussions from tariffs. Powell further cautioned about heightened risks to both inflation and unemployment, suggesting a measured approach before making further policy adjustments. The dollar achieved its most substantial gains this week against the euro, New Zealand dollar, and Australian dollar.