USD Strengthens as US Industrial Production Beats at +0.5% in January

The US dollar received a modest boost after January industrial production rose 0.5% month-over-month, significantly exceeding the 0.4% consensus forecast. The stronger-than-expected reading suggests underlying resilience in the US economy despite a sluggish manufacturing sector. Utilities and mining output showed volatile swings that offset weakness in factory production, with total industrial production growing at a 1.1% annual rate in Q3 of the prior year. The data follows a revised 0.1% gain in September and a 0.3% decline in August, highlighting uneven momentum across industrial subsectors. The stronger print reinforces expectations that the Federal Reserve may maintain its restrictive stance for longer, supporting the dollar broadly against major counterparts. Traders should monitor upcoming FOMC minutes for further policy clues. Near-term, the DXY index finds support around current levels, with resistance at recent highs. The beat on industrial production adds to the case for dollar bulls, though sustained gains will depend on broader macro confirmation from employment and inflation data.