The US dollar traded mixed in the first half of Friday’s session, after an eventful week. It was up against the commodity currencies after investors were left unimpressed with China’s $1.4 trillion programme to refinance local government debt. The greenback was also a little firmer against European currencies, while the Japanese yen outperformed as bond yields dipped. The dollar’s failure to add onto its gains to its post-election rally suggests we may have seen a near-term peak, ahead of next week’s US inflation data. Still, major pairs remain below key levels – for example, the GBP/USD was still below the 1.30 handle, while the EUR/USD had only made up half of the election-related losses. So, the picture was muddled overall. Helping weigh on the dollar was easing of bond yields, with the benchmark 10-year Treasury yields having returned to their starting point after a volatile two-day swing. While one can argue the greenback has made a short-term peak, the overall dollar forecast remains positive, especially against currencies subject to increased tariff risks from Trump’s administration.