Dollar appreciates amid positive data on US economy

On Thursday, the US dollar strengthened and headed for a second week of gains, supported by positive data on retail sales and initial jobless claims. These indicators pointed to the resilience of the American economy, despite concerns over President Trump's tariff policies. Investors began to revise expectations for an interest rate cut by the Federal Reserve (Fed) in September.

The dollar's rise followed a drop the day before, triggered by Trump's announcement of a possible change of Fed chairman. He later backtracked on those words, temporarily calming markets. However, experts, including analysts at Deutsche Bank and Societe Generale, said political instability could continue to weigh on the US currency and bonds.

At the same time, data on retail sales growth and a moderate increase in bond yields suggest continued economic stability. As noted by analysts at Nomura and Wells Fargo, the US economy is not yet showing signs of a serious slowdown. This supports the demand for dollar assets.