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2026.01.0701:22:13UTC+00Dollar Firms Up Ahead of More Data

The dollar index stabilized around 98.5 on Wednesday after achieving gains in the previous session. Investors are positioning themselves in anticipation of new US economic data, which could influence expectations regarding the Federal Reserve's policy direction. Key data releases include the ISM Services PMI and JOLTs job openings, set to be unveiled later today, alongside weekly jobless claims on Thursday and the December jobs report on Friday. Earlier in the week, ISM data indicated the most significant contraction in the US manufacturing sector since 2024. Investors are also evaluating recent comments from Federal Reserve officials, notably Governor Stephen Miran, who stated on Tuesday that the central bank must implement significant interest rate cuts this year to maintain economic momentum. Despite this stance, markets currently reflect an over 80% probability that the Fed will keep its policy unchanged at the forthcoming meeting. Externally, the dollar received support from a weaker euro, influenced by lower inflation figures in both Germany and France.

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