Dollar Strengthens as Markets Anticipate Fed Rate Shift

The US dollar strengthened against most major currencies on Friday as investors awaited important data and speeches from Federal Reserve officials.

The industrial production figures for August, due at 9:15 am ET, were closely watched by traders, who also looked forward to comments from Fed Governor Michelle Bowman at 9:30 am ET and Kansas City Fed President Jeffrey Schmid at 11:45 am ET.

As a result of this heavy US-centric calendar, the dollar edged higher against the euro and yen, while sterling held steady after UK retail sales rebounded in August. The bigger picture is that traders were positioning themselves for how the data and officials' tone might shift expectations for US interest rates over the coming months.