Dollar Set for Longest Winning Run Since February on Strong Data

The dollar headed for its longest run of daily gains since February after the latest data underscored the strength of the US economy.

The rose 0.3% to the highest level since June 23, with the gauge on course for its fifth straight advance.

US economic growth and inflation data came in above expectations on Wednesday, supporting the Federal Reserve’s hawkish stance. Economic activity in the second quarter on a modest pickup in consumer spending, while core PCE — the Federal Reserve’s preferred inflation measure — rose 2.5% from the second quarter of 2024. This came after ADP Research’s private-sector payrolls figures pointed to a .

“Markets may see the data as arguing for less aggressive and more back-loaded Fed easing,” said Valentin Marinov , head of Group-of-10 FX strategy at Credit Agricole. “The USD rate appeal could grow especially if Fed Chair Powell stays true to his still rather neutral outlook on policy.”

Traders are eagerly awaiting the Fed’s policy meeting later for clues on the policy path as US Presidnent Donald Trump ratchets up pressure for lower rates. While the central bank is widely expected to stay on hold, focus is on the likelihood of a reduction in September, with the odds of a cut still at 60%.

“If the US data continues to signal resilience, President Trump may have to recognize that and even tone down his attacks on the Fed,” added Marinov.