U.S Dollar Climbs after Trump’s Fed Member Interim Pick
The US dollar was resilient against trading partners across markets on Friday, with the dollar index (DXY) stabilizing slightly above 98.00, according to forex market trading data.
During early trading hours, the US dollar rose slightly on Friday but was on track for a weekly decline after US President Donald Trump’s interim pick for a Federal Reserve Board member sparked expectations of a dovish successor to Jerome Powell when his term ends.
The yen slipped slightly against the dollar, which dropped 0.31% to 147.560 yen. The dollar rose 0.25% against the euro to $1.163775 and climbed 0.29% against the Swiss franc to 0.80840 francs.
Amid concerns over slowing US economic growth, especially in the labor market—fueling hopes for Fed rate cuts—the dollar has declined 0.6% so far this week against a basket of major currencies.
US Dollar Index edged up 0.1% to 98.15 as forex market traders opened positions. Recall that the USD Index registered small losses on Thursday as GBP/USD rallied following the Bank of England (BoE) event, suggesting that Pound Sterling captured capital outflows out of the USD.
The BoE announced that it lowered the policy rate by 25 basis points (bps), as expected, after the August meeting. Policymakers voted 5-4 in favor of the rate cut after the second round of voting, while markets were expecting only two officials to vote for a hold. In the post-meeting press conference
For the week, the dollar is only modestly weaker after President Trump nominated Stephen Miran to fill a vacancy on the Fed’s Board of Governors, ING’s Francesco Pesole says in a note.
Next week, investors will remain focused on trade tensions, watching for any progress toward a US–China agreement before the August 12 deadline, after which tariffs exceeding 100% could be imposed.
Geopolitical developments will also be in the spotlight as Presidents Trump and Putin are expected to meet soon to find a solution for the conflict in Ukraine. In the US, key releases include CPI and PPI, retail sales, industrial production, and the preliminary reading of the University of Michigan’s consumer sentiment.
Globally, attention will turn to China’s inflation, industrial production, retail sales, and new yuan loans; Eurozone GDP; Germany’s ZEW economic sentiment; Japan’s preliminary Q2 GDP; inflation data from India and Brazil; and a busy UK docket with GDP, labor market, industrial production, and trade figures. Crude Oil Prices Edge Higher on Demand Optimism
