FX.co ★ DXY Rises to Over 3-Week High

On Thursday, the US dollar index surpassed 98.7, marking its peak for over three weeks, following retail sales data that exceeded expectations and alleviated concerns regarding consumer spending. June saw retail sales increase by 0.6%, a recovery from the significant 0.9% decrease in May, and well above the anticipated rise of 0.1%. This rebound signals a robust household demand, bolstering the argument for the Federal Reserve to maintain current interest rates. Consequently, traders have adjusted their forecasts for rate cuts in 2025, now anticipating fewer than two reductions this year, rather than the three projected earlier in July. Recent market fluctuations were further influenced by political uncertainty, as rumors circulated about Fed Chair Jerome Powell's tenure. Nevertheless, President Trump later clarified that there were no immediate plans to replace Powell, despite his ongoing criticism of the central bank for its pace in cutting rates.