At 14:46 GMT, DXY is trading 98.718, up 0.439 or +0.45%.
Powell’s Status Adds Uncertainty, Supports Dollar Volatility
Market reaction was immediate after U.S. President Donald Trump reignited doubts about Federal Reserve Chair Jerome Powell’s job security. Trump denied any imminent plans to dismiss Powell but maintained a critical stance, creating uncertainty around the Fed’s independence.
The dollar initially rallied, supported by strong retail data, before giving back gains as traders weighed the implications of Powell potentially being replaced. Analysts warned that any real threat to Powell’s position could destabilize confidence in U.S. monetary policy and spark further market volatility.
Retail Sales and Jobless Claims Offer Dollar Tailwind
Economic data helped stabilize the greenback. U.S. retail sales rose 0.6% in June, well above the 0.2% estimate, while jobless claims fell by 7,000 to 221,000. These figures provided short-term support to Treasury yields and the dollar.
However, reaction was muted, with the 10-year yield drifting lower to 4.433% and the 2-year yield holding at 3.89%. Traders are watching these developments closely for confirmation that U.S. consumer strength can underpin dollar resilience.
Global Risks: Japan’s Election and Trade Deal Worries Weigh on Yen
The Japanese yen slid to 148.73 against the dollar, nearing one-year lows, as political uncertainty deepened ahead of Japan’s upper house elections.
