Dollar Holds Steady in Thin Holiday Trade

2026-02-16 01:59 By Jam Kaimo Samonte 1 min. read

The dollar index held just below 97 on Monday, moving sideways in holiday-thinned trading as US markets were closed for the Presidents’ Day holiday.

Last week, the dollar came under pressure after benign US inflation data reinforced expectations that the Federal Reserve will cut interest rates later this year.

The annual headline inflation rate slowed to 2.4% last month, down from 2.6% in each of the previous two months and below forecasts of 2.5%.

On a monthly basis, inflation eased to 0.2%, compared with expectations that it would remain steady at 0.3%.

Meanwhile, earlier data showed US payrolls rose by the most in more than a year and the unemployment rate unexpectedly fell, signaling a stabilizing labor market.

Markets are currently pricing in a Fed rate cut in July, with a strong probability of a move in June as well.

Investors now turn to the latest Fed minutes, Q4 GDP data, and the Fed-preferred core PCE price index report for further guidance on the monetary outlook.



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