The US dollar has risen to a 3½‑week high against the euro, reaching $1.1682 per euro—the strongest level since December 10. It also posted two‑week highs against the yen, Swiss franc and Canadian dollar. In addition, the dollar gained 0.1 % against the British pound, trading at $1.3425, and rose 0.3 % versus the Australian dollar, now at $0.6670.
Despite the recent escalation of US‑Venezuela tensions—including a US raid that led to the capture of President Nicolás Maduro—currency markets have remained largely unaffected. Traders are instead concentrating on upcoming US macroeconomic indicators that are expected to shape Federal Reserve policy. These data releases will provide insight into the US economy and could influence the Fed’s decisions on interest rates.
Current futures calculations suggest traders anticipate two Federal Reserve rate cuts in 2026. Attention is also focused on the selection of the next Fed chair, as Jerome Powell’s term ends in May. President Donald Trump has said he will announce his nominee this month, describing the choice as “someone who believes in lower interest rates, by a lot.”
The combination of expected rate cuts and the appointment of a new Fed chair is likely to have significant implications for global currency markets. As the situation evolves, traders and investors will be closely monitoring US economic developments and their potential impact on the dollar and other currencies.
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