16 January 2026, 05:19  USA: Dollar Heads for 3rd Weekly Gain.

The dollar index held steady around 99.3 on Friday, poised for a third consecutive weekly gain as strong US economic data tempered expectations for additional Federal Reserve interest rate cuts. Weekly jobless claims came in well below forecasts, signaling a resilient labor market, while some manufacturing surveys also exceeded expectations. Several Fed officials also highlighted signs of labor market stability and cautioned against potential inflationary risks. Markets widely anticipate that the Fed will keep rates unchanged later this month, with forecasts for the next rate cut now pushed back to June or later. On the trade front, the US agreed to lower tariffs on Taiwanese goods from 20% to 15%, while Taiwanese companies committed to investing at least $250 billion to expand chip manufacturing capacity in the US. Elsewhere, President Trump indicated he may delay action in Iran but reiterated his intention to pursue the acquisition of Greenland.

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