Dollar Hits Six-Week High as Strong Data, Fed Signals Cool Near-Term Cut Bets

Traders now price roughly 5% odds of a January rate cut.

Overview

Initial jobless claims fell to 198,000, a six-week low that underscored labor-market resilience.
The Empire State and Philadelphia Fed January surveys climbed more than expected, signaling improving regional activity.
U.S. manufacturing output rose 0.2% in December and November was revised up to 0.3%.
Atlanta Fed President Raphael Bostic and Kansas City Fed President Jeff Schmid said policy should remain restrictive.
President Trump indicated he may keep Kevin Hassett in his current role, reducing expectations for a dovish Fed chair pick and lending support to the dollar.