FX.co ★ Dollar Heads for 2nd Weekly Gain

The US dollar pared some of its losses, stabilizing around 98.4 on Friday, following an uptick in the University of Michigan’s consumer sentiment index, which rose to 61.8 in July, its highest level in five months and surpassing forecasts. This data underscores the economy's resilience and bolsters the perspective that the Federal Reserve might postpone interest rate cuts. Earlier in the week, better-than-expected retail sales and a dip in jobless claims to a three-month low further supported the dollar. Fed Governor Adriana Kugler expressed her support for maintaining current rates for an extended period, while other officials, including Governor Waller and San Francisco Fed's Daly, still predict rate cuts later this year. Concurrently, President Trump assured markets that he will not dismiss Fed Chair Jerome Powell, yet he remains critical of the current pace of rate reductions. Overall, the dollar is poised for a 0.6% rise this week, marking its second consecutive weekly gain and the first streak since May.