US Dollar Index (DXY) approaches multi-week highs at 98.44 in risk-off markets 

• The Dollar appreciates due to risk aversion amid global trade uncertainty.
• Speculation about Fed Chairman Powell's resignation is supporting the US Dollar so far.
• Later today, US Jobless Claims and Retail Sales data will give further clues about the impact of tariffs on the US economy.

The US Dollar is outperforming its main rivals on Thursday, supported by risk-averse markets amid growing anxiety about trade tariffs and the ongoing pressures on Fed Chairman Powell, which have boosted speculation about his resignation. 

The US Dollar Index (DXY), which measures the value of the Greenback against a basket of the six most traded currencies, retraces Wednesday's losses and trades 0.4% higher on the day, at the 98.20 area, coming closer to the three-week high of 98.40.

The Dollar appreciates on trade uncertainty and the Trump-Powell standoff

Risk aversion is boosting the US Dollar, with uncertainty about global trade at high levels as the August 1 deadline for higher unilateral tariffs on exports to the US approaches, amid a lack of progress in negotiations to cut a better deal.,

These tensions are so far supporting the US Dollar, although a potential resignation from Powell and his replacement with a candidate with a more dovish agenda might lead to higher inflation and the erosion of investors' confidence in the US financial system, with very negative consequences for the Dollar.

In the macroeconomic domain, US PPI data showed some moderation on factory gate inflation, which eased concerns triggered by the higher CPI numbers seen on Tuesday. Today, the focus will be on June's Retail Sales and Weekly Jobless claims, which will provide further insight into the impact of tariffs on consumption and the labour market.