FX.co ★ Dollar Holds Advance Ahead of Key Data

The dollar index remained above 97.8 on Thursday, following a strong rebound in the previous session. Traders are now closely monitoring crucial labor and inflation data, which will influence expectations regarding Federal Reserve policy. Later today, weekly jobless claims are set to be released, amid growing concerns over weaknesses in the labor market and increasing layoffs. Meanwhile, Friday's PCE price index is anticipated to shed light on how tariffs are affecting inflation. Recent statements from the Federal Reserve have added complexity to the potential for rate cuts, with the market no longer fully anticipating a reduction next month. Futures currently suggest 43 basis points of rate easing over the Fed's two remaining meetings this year. Additionally, the possibility of a government shutdown continues to contribute to market uncertainty.