Dollar Strengthens on Robust US Economic Data, Major Pairs Under Pressure

The US dollar index gained 0.8% during the week ending September 26, reaching 101.50 as stronger-than-expected economic indicators dampened Federal Reserve rate cut expectations. Key data releases included Consumer Confidence jumping to 103.0 from 96.5, exceeding forecasts of 98.7, while Durable Goods Orders rose 0.2% against expectations of -2.6%. The positive data flow has reduced market expectations for aggressive Fed easing, with December rate cut probability falling to 45% from 70% the previous week. Major pairs faced selling pressure, with EUR/USD declining 1.2% to 1.1050 and GBP/USD dropping 0.9% to 1.3320. USD/JPY advanced to 149.80, approaching the critical 150.00 resistance level. Traders are now positioning for next week's ISM Manufacturing PMI and employment data, which could either reinforce dollar strength or trigger profit-taking if results disappoint market expectations.