The Dollar Dances—Stability or Sway?
Friday’s Calm After a Wild Week
On Friday, the dollar index stayed pretty much where it was, following a week of a lot of ups and downs. Just before that, on Thursday, the greenback slipped a bit—down 0.4%—when January retail sales dropped more than people expected.
Jobless Claims Keep the Market Buzzing
At the same time, initial jobless claims fell to 212 K—lower than what most analysts were looking for. That’s a good sign the labor market is still holding strong. Together with the CPI glitch on Tuesday, these numbers have investors tightening their sockets on the future path of monetary policy.
Fed Fella’s Uncertain Signals
- Raphael Bostic (Atlanta Fed): While inflation is down, he’s not yet ready to slash rates. The risks still loom.
- Austan Goolsbee (Chicago Fed): He’s calling for a “softer” approach—he thinks the bank shouldn’t wait too long to cut rates.
Because of this split view, the dollar might keep hopping around, especially as new data pops up and Fed comments surge.
What’s Next on the Horizon?
Traders are still betting a rate cut in June. But keep an eye on the today’s PPI data and future releases—those could give fresh clues about what the Fed might do next.
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