Fed’s shift to data-dependent stance lifts USD to 100.80, highest since May 2025, while jobless claims data shows mixed labor trends.
The US Dollar Index climbed to 100.80, its highest level in a year, after the Federal Reserve held rates at 3.50%-3.75% and removed language hinting at further hikes. The move signals a more cautious, data-driven approach under new Fed Chair Kevin Warsh.
Initial Jobless Claims fell to 226,000, near expectations, while Continuing Claims rose to 1.81 million, indicating some softness in long-term unemployment. The Euro remained pressured near 1.1460, with ECB officials warning of inflation risks tied to energy and wage growth.
The Pound underperformed as the Bank of England held rates steady, reinforcing the Dollar’s strength across major currency pairs.