The dollar index climbed above 98.5 on Monday, reaching a two-week high as investors assessed the US attack on Venezuela while focusing on key US economic data this week that could influence Federal Reserve policy. A US military operation in Venezuela over the weekend that led to the capture of President Nicolas Maduro stoked fresh geopolitical concerns, though the impact on markets has so far been subdued. Investors are now eyeing December’s jobs report on Friday, alongside JOLTS and ADP employment data, ISM PMIs, and the Michigan consumer confidence survey. Markets currently anticipate two US rate cuts this year, despite the Fed projecting only one. Meanwhile, President Trump is expected to announce his choice for the next Fed chair this month, who will likely support Trump’s call for lower borrowing costs.
