Dollar and Oil Markets Show Divergence Amid Economic Signals

The U.S. dollar edged higher on Friday, buoyed by stronger-than-expected economic data, yet still recorded its steepest weekly decline in a month. Mixed signals from capital goods orders and shipments underscored a sharp slowdown in business investment during Q2. Despite a 0.3% rise in the dollar index, the currency failed to recover from earlier losses.

Oil markets faced sustained pressure, with Brent crude settling at $68.44 and WTI at $65.16—levels last seen in early July and late June, respectively. Both benchmarks ended the week down 1% and 3%, as traders weighed oversupply concerns against faint hopes of demand revival from potential U.S. trade deals. The market’s cautious stance reflected broader unease over policy decisions and geopolitical risks.