FX.co ★ Dollar Set for Weekly Advance

The US dollar index rose to nearly 98 on Friday, poised for a weekly gain of almost 1%. This upward trend was driven by recent tariff announcements and shifting monetary policy indicators. President Trump heightened trade tensions during the week by announcing a 35% tariff on Canadian imports effective August 1, while also indicating plans for comprehensive tariffs ranging from 15% to 20% on most other trading partners. Additionally, the administration declared 50% duties on imports of copper and Brazilian goods, also set to begin on August 1. In terms of monetary policy, Chicago Fed President Goolsbee countered suggestions of rate cuts aimed at alleviating government debt, reaffirming the Federal Reserve's commitment to its dual mandate of employment and price stability. Meanwhile, the latest weekly jobless claims data signaled a labor market that remains robust but is starting to show signs of cooling. The dollar experienced its most significant gain against the yen this week and also made strong advances against the euro.