Power of the Dollar, The U.S. dollar climbed for a fifth straight session on Friday; Trump-Xi meeting details eyed

The U.S. dollar climbed for a fifth straight session on Friday, set for sharp weekly gains, as a run of robust U.S. economic data reinforced expectations for a hawkish Federal Reserve outlook.

Investors also assessed details of the summit between U.S. President Donald Trump and Chinese President Xi Jinping.

The US Dollar Index rose 0.3% to 99.11 by 06:34 ET, set to jump 1.3% for the week — its largest weekly rise in more than two months.

US retail sales, inflation figures spark Fed hike bets. 

Data on Thursday showed that U.S. retail sales rose 0.5% in April, matching economists’ forecasts, while weekly jobless claims remained relatively low, pointing to a resilient labour market.

Import prices also climbed 1.9%, driven by the biggest increase in fuel costs in four years.

Earlier this week, U.S. consumer and producer inflation data also came in stronger than expected.

Markets have now largely priced out any chance of a Federal Reserve rate cut this year. CME FedWatch data showed expectations for a 25-basis-point rate hike in December rose to around 40%, from 22% last week.