Market Analysis by Quasar Elizundia, Expert Research Strategist at Pepperstone
“The US dollar advanced on Thursday, buoyed by fresh signs of resilience in the labor market and cautious remarks from Federal Reserve officials. Initial jobless claims fell for a fourth straight week to 227,000, defying expectations of an uptick and marking the lowest level in nearly two months. While continued claims edged higher, the data overall reinforced the view that the US economy remains relatively solid, reducing immediate pressure on the Fed to ease policy.
St. Louis Fed President Alberto Musalem added to that narrative, highlighting the strength of the labor market while warning of renewed inflation risks driven by tariffs. Musalem stressed that it is too early to judge whether these price pressures will be transitory or persistent, but acknowledged that a weaker dollar could amplify the impact.
Meanwhile, President Trump escalated trade measures with new tariffs targeting Brazilian imports and several smaller trading partners. Though market reaction has been measured, the broader implications for global inflation dynamics and central bank policy are still unfolding. Looking ahead, attention turns to upcoming Fed speeches for further guidance.”
