The U.S. dollar is consolidating its gains against a basket of major currencies on Thursday, as markets prepare for the Thanksgiving holiday. Trading activity is expected to slow down significantly ahead of the long weekend.

The dollar index, which measures the greenback’s strength against six major currencies, is hovering around 101.70, showing little movement from the previous day’s close. The index reached a 13-year high earlier in the week, driven by expectations of increased fiscal spending and rising interest rates under the incoming Trump administration.

Analysts suggest that the dollar’s recent strength is largely priced in, and further gains will depend on the release of upcoming economic data. Investors will be closely watching reports on durable goods orders, consumer sentiment, and inflation for clues about the Federal Reserve’s future policy decisions.

The euro is trading slightly higher against the dollar at around $1.0560, while the yen is holding steady at around 113.20 per dollar. The British pound is also showing resilience, trading near $1.2450.

With U.S. markets closed on Thursday for Thanksgiving and a shortened trading session on Friday, liquidity is expected to be thin, potentially leading to increased volatility. Market participants are advised to exercise caution during this period.