The US dollar remained under pressure on Thursday despite positive economic data, including a stronger-than-expected Q2 GDP growth of 3.3% and lower jobless claims of 229,000. Core PCE inflation held steady at 2.5%, signaling stable growth for now, with key consumer data like personal income and spending due Friday.
Politically, the White House intensified its criticism of Fed Governor Lisa Cook, accusing her of dishonesty and pushing for her removal. This aligns with expectations of lower interest rates and a weaker dollar.
Geopolitically, oil prices stayed firm amid Russia strikes on Kiev and stalled talks of a Putin-Zelensky summit, while US-Russia tensions may fuel support for new sanctions. In Europe, discussions about removing tariffs on US industrial goods hint at improving trade relations, reflecting the Trump administration’s focus on security, especially as Russia, North Korea, and China strengthen their ties.
Exclusive FX research from LMAX Group Market Strategist, Joel Kruger
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