Due to strong data-driven momentum, the US Dollar is poised to achieve its longest winning streak since February.

On July 30th, the latest data indicates that the U.S. economy is robust, and the dollar is moving towards its longest consecutive upward trend since February. The Bloomberg Dollar Spot Index increased by 0.3%, reaching its highest level since June 23rd, with the index rising for five consecutive trading days. The U.S. economic growth and inflation data released on Wednesday were both higher than expected, which supported the Federal Reserve's hawkish stance. In the second quarter, U.S. economic activity rebounded as consumer spending picked up slightly, and the Fed's preferred inflation indicator, core PCE, rose by 2.5% year-on-year. Meanwhile, ADP private sector employment data shows that the labor market remains strong. Valentin Marinov, the head of G10 currency strategy at Credit Agricole CIB, said, "The market may view this data as suggesting that the Fed's future rate cuts will be slower and more postponed. If Federal Reserve Chair Powell continues to maintain his current relatively neutral policy outlook, the dollar's interest rate attractiveness may further increase." (FXStreet)