The dollar index climbed past 98 to a near three-week high, extending gains for the second session as markets weighed fresh US data against uncertainty over Fed rate cuts. Jobless claims fell by 14K to 218K last week, well below forecasts, signaling firms remain reluctant to cut staff despite a softer labor market. Meanwhile, revised GDP figures showed the economy grew at a 3.8% annualized pace in Q2, the fastest in nearly two years, lifted by stronger consumer spending after a Q1 contraction. Separate data pointed to rising business equipment orders and a narrowing trade deficit. Fed Chair Powell this week highlighted rising risks to employment in a “less dynamic” labor market, but markets are now less convinced of imminent rate cuts, pricing just 43bps of easing for the rest of 2025. Investors are also watching Friday’s PCE inflation release and political uncertainty around a potential US government shutdown.