US personal income and consumer spending both increased in December 2025, pointing to steady household demand as inflation pressures edged higher. Data from the Bureau of Economic Analysis showed personal income rose by $86.2 billion, a 0.3% month-over-month gain. Disposable personal income also increased 0.3%, or $75.7 billion, while personal consumption expenditures climbed $91.0 billion, equivalent to a 0.4% monthly rise.

The dollar index climbed toward 98 on Friday, setting up for an approximate 1% weekly gain, supported by firm US data and steady Fed rhetoric.

Concerns over a possible shift toward US military action against Iran have resurfaced, placing geopolitics back at the center of global market attention. While diplomatic channels remain open, relations between Washington and Tehran continue to be strained, with limited trust on both sides. Recent talks in Geneva signaled ongoing engagement, but the absence of a clear breakthrough has kept uncertainty elevated and risk premiums firmly in place.