The US Dollar Index strengthened after April Retail Sales rose 0.5% month-over-month, surpassing market expectations. Meanwhile, Stephen Miran’s resignation from the Fed Board has paved the way for Kevin Warsh to take over as Federal Reserve Chair. At the same time, President Trump said US-China relations could become “better than ever,” while Chinese President Xi signaled a willingness to help ease tensions surrounding the Iran conflict.
The US Dollar Index (DXY), which tracks the US Dollar (USD) against a basket of six major currencies, extended its rally for a fifth straight session, trading near 99.10 during Friday’s Asian session.
The Greenback strengthened after the release of solid US Retail Sales data, which showed a 0.5% month-over-month increase in April, highlighting the resilience of US consumer spending despite persistently high borrowing costs.
Support for the US Dollar also came from developments within the Federal Reserve, as Stephen Miran’s resignation from the Board of Governors has opened the door for Kevin Warsh to become the next Fed Chair.
At the same time, rising inflationary pressures tied to escalating Middle East tensions have strengthened expectations that the Fed could keep interest rates elevated for longer or potentially raise them further.
Meanwhile, US President Donald Trump said on Thursday that he hopes relations with China will become “stronger and better than ever before,” adding that President Xi had offered support in helping ease tensions surrounding the Iran conflict. The improving diplomatic tone boosted market risk sentiment, which typically limits demand for the US Dollar’s safe-haven appeal.
THE ETERNAL SOVEREIGN 
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