The dollar is heading for its best week in more than a month on Friday, supported by lower-than-expected interest rate cuts by the Federal Reserve, and Donald Trump's policies may increase inflation when he takes office in January.
The markets will be focused on the prospects of President Trump's political program, so we may see further gains for the US dollar.
Higher trade tariffs and tighter immigration under the Trump administration are expected to fuel inflation, which could slow the Fed's easing cycle in the long run.
DXY
The dollar index rose today near 107 levels and is still a candidate for further ascent, as Fed Chairman Jerome Powell said on Thursday that the Fed does not need to rush to cut interest rates, citing continued economic growth, a strong labor market and steady inflation as reasons to caution against easing policy too quickly.
Traders reacted by reducing bets on the pace and size of future interest rates, and the pricing of a 25 basis point interest rate cut next month fell to just under 50% from 82% a day earlier.
GBPUSD
The pound has been falling since the beginning of trading this week with the strength of the US dollar, and it fell today after the negative growth data released from the British economy this morning.
EURUSD
The EURUSD pair retreated near the 1.0500 levels, remaining near the one-year low recorded in the previous session, which is the worst performance of the pair in more than a month.
USDJPY
The yen continues to weaken deeper, having reached near a zone that led to the intervention of the Japanese authorities in the past, and the yen is considered to be on its way to a weekly decline of 2.3%.
The Bank of Japan said on Friday that Governor Kazuo Ueda will give a speech and hold a press conference on Monday, waiting for hints on whether the BOJ may raise interest rates next month.
AUDUSD
The Australian dollar lost 1.85% this week, which is its worst weekly performance in 4 months.
NZDUSD
He is also looking for a weekly decline of 1.8%, to remain near its lowest level in a year.
The currencies of Australia and New Zealand, which are considered partners of China and the yuan, did not react especially to a series of economic data that showed a slowdown in industrial output growth in China in October, as the yuan fell strongly and on its way to decline for the seventh week in a row, and this is the longest losing streak for the yuan since 2021.
BTCUSD
The world's largest cryptocurrency has risen by about 30% since Trump's victory, yet some are still cautious about bitcoin's continued highs and volatility.
As investors reaped profits by the end of the trading week to trade the lowest levels of 90 thousand dollars after a Great March and reaching its highest levels ever at 93 thousand dollars.
