FX.co ★ Dollar Gains for 3rd Session

The dollar index experienced an upward trend for the third consecutive session on Thursday, approaching the 100 threshold, attributed to increased optimism surrounding a potential trade agreement between the United States and the United Kingdom, which has positively impacted investor sentiment. A press conference is anticipated later today, where this agreement is expected to be the inaugural accord among several forthcoming deals of a similar nature. Additionally, US and Chinese representatives are scheduled to convene in Switzerland over the weekend to deliberate on trade relations. In the meantime, the Federal Reserve has opted to maintain current interest rates, with Chair Jerome Powell highlighting significant risks associated with inflation and unemployment. He also refuted the notion of a precautionary rate cut in anticipation of the potential economic repercussions stemming from President Trump's proposed tariffs. The dollar demonstrated its most significant appreciation against the Japanese yen and the Canadian dollar, yet it saw a decline against the British pound, which surged following the Bank of England's anticipated rate cut. However, the Bank's subsequent statements were unexpectedly more hawkish in tone.