Dollar Heads for Strong Weekly Gain

2026-02-20 01:37 By Jam Kaimo Samonte 1 min. read

The dollar index rose toward 98 on Friday and was poised for a roughly 1% gain on the week, supported by robust US economic data and hawkish signals from the Federal Reserve.

On Thursday, weekly jobless claims fell to a five-week low, while the Philadelphia Fed business outlook survey unexpectedly jumped to a five-month high.

However, the US trade deficit widened in December and pending home sales declined in January.

Investors are now focusing on advance fourth-quarter GDP figures and the PCE price index report, the Fed’s preferred inflation gauge.

Minutes from the latest FOMC meeting showed policymakers divided on the rate outlook, with some indicating further hikes could be warranted if inflation remains elevated.

Fed Governor Stephen Miran noted he now anticipates a “less accommodative” rate path, citing resilient employment and persistent goods inflation.

Traders have scaled back expectations for aggressive easing but continue to price in two 25 basis point cuts before year-end.



News Stream
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